2022 (9) TMI 975

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.... Act] for A.Y. 2011- 12.The impugned orderswas originated from the order of the Income Tax Officer, Ward-2, Hoshiarpur, (in brevity the AO) order passed u/s 143 (3) /148of the Act date of order 19.12.2018 for A.Y. 2011-12. 2. The brief fact of the case is that the assessee's case was reopened u/s 148 with recorded reason that the premature surrendered of policy amount Rs.34,64,715/- deposited in assessee's bank account. The information was received from the DIT (Intelligence & Criminal Investigation). The assessee invested in Bajaj Insurance as premium Rs.10 lac and premature amount was received during the F.Y.2010-11. As per section 80CCB to the ld. AO added back the amount with the total income of the assessee. Being aggrieved assessee f....

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....elow:- "The information in the case of assessee Sh. Hardip Singh Badyal S/o Sh. Ajit Singh, Vill. Brahmjit P.O. Hardokhanpur that was receieved from from the DIT (Intelligence &Criminal Investigation) that during the FY 2010-11, the assessee Sh. Hardeep Singh Badwal had carried out huge financial transaction by way of making payment to Bajaj Insurance as premium of Rs. 10,00,000/- and also surrender premature policy and received Rs. 34,64,715/-. Since the assessee has not filed his return of income for the A.Y. 2011-12, so it could not be gathered that these investments / transactions have been from his disclosed sources and offered for taxation. The enquiry letter was issued to assessee for verification vide this office letter dated 16.0....

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....ncome for AY 2007-08 & had not availed the benefit. But the revenue had wrongly determined the tax on 80CCB(2) without giving effect of section 45(6) of the Act. On repurchase or redemption, the principal amount which had been allowed as a deduction under section80CCB was exigible to tax as income by virtue of section80CCB(2). The premium on repurchase or redemption of such units is deemed to be a capital gain under section 45(6). Section 45(6) provides that the difference between the repurchase price of the units and the amount invested therein shall be deemed to be the capital gains arising to the assessee in the previous year in which such repurchase takes place, etc. and taxed accordingly. It is a trite law. By virtue of section 45(6) d....