TaxTMI 
TaxTMI 
2025 (3) TMI 1783
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.... policy amounting to Rs. 21,44,067/-, to tax. 2.1 Assessee was issued show caused notice calling upon details of surrender of the policy in response to the notice, the assessee furnished reply dated 14/03/2022. The Ld.AO after considering the same rejected the explanation furnished by the assessee and made addition in the hands of the assessee amounting to Rs. 21,44,067/- 3. On receipt of the draft assessment order, the assessee preferred objection before the DRP. 3.1 Before the DRP, assessee submitted that, she is eligible to claim deduction u/s. 10(10D), in respect of settlement amount received from Bajaj Alliance. It was submitted that, the life insurance policies are entitled for deduction as the provision of section 10(10D) upon maturity of satisfaction upon the specified condition and thus it was submitted that the claim cannot be denied. 3.2 The DRP after considering the rival contention of the assessee observed and held as under: "7. Discussions & Directions of DRP: 7.1 We have carefully considered the rival contentions. The AO has taxed the excess of maturity proceeds over the amount invested of a Unit-linked Insurance plan. Actually, a lot of....
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.... at all. But, this is a general statement. There are ULIPs where there are a minimum sum assured. In fact, how can there be an insurance policy without any reference to the sum assured! Then, it shall become a mutual fund or something like that. 7.5 It is noticed that the assessee has not given the issue the due importance which it deserved. The claim of an exemption is not simple and straight-forward It has to be proved with enough evidence. In fact, it would have been better had the assessee filed the ROI in due time and claimed the deduction or exemption at that time itself. The question of the Insurance company not co-operating etc in furnishing details etc would not have arisen and it would have stood the test of enquiry. That being not so, we are constrained to observe that the objections raised do not have any merits and deserve to be rejected. We direct accordingly." 3.3 On receipt of the DRP direction the Ld.AO passed impugned order by making addition in the hands of the assessee. Aggrieved by the final assessment order assessee is in appeal before this Tribunal. 4. The Ld. AR submitted that, the assessee raised main grounds of appeal claiming that she has r....
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.... raised by the assessee is challenging the addition of Rs. 21,44,067/- under the head income from other sources. 6.1 It is the submission of the Ld.AR that assessee had made investment in non participating unit linked plan issued by Bajaj Alliance life insurance company during the financial year 2009- 10 and had paid premium of Rs. 60,00,000/- over the period of 3 years. 6.2 The Ld.AR submitted that, assessee received sum of Rs. 81,44,067/- as premature sum on surrender of the policy with M/s. Bajaj Alliance. He submitted that assessee received Rs. 21,44,067/- over and above the investment she made under the policy which was claimed u/s. 10(10D) of the act as exempt. The Ld.AR relied on the policy document and statement of account issued by M/s. Bajaj Alliance placed at pages 4-36 of the paper book. 6.3 On the contrary, the Ld.DR relied on the report submitted by the Ld.AO dated 27/07/2023 as well as 17/07/2023 which is scanned and reproduced as under: "2. Facts of the Case: The status of the assessee was non-resident and not filed the return of income during A.Y. 2014-15. Accordingly, the case was reopened on the basis of information received from the IT....
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....e, neither details of sum assured are clear. In absence of such critical information, which would determine applicability of section 10(10D) of the Act, it is impossible to comment on the taxability of such surrendered pension policy. Without prejudice to the above, sufficient opportunity was given to the assessee during the course of assessment proceedings to file the details but the assessee has not furnished the same, also during the DRP proceedings the assessee has filed to file any such details. Therefore additional evidence may not be accepted at this juncture as sufficient opportunities have already been given." Kindly refer to the above. 1. During the course of hearing, the Assessee filed additional evidences, which were not filed before the AO during the assessment proceedings or before the DRP. These evidences were forwarded to the AO for necessary verification and comments. The Assessing Officer submitted written reply on the subject matter, a copy of which is submitted for kind perusal of the Honourable Members. 2. On verification of the replies and other evidences submitted by the Assessee, it could not be conclusively ascertained as....
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....e policy vide her letter dated 27/03/2014, in view of which, she received total sum of Rs. 81,44,067/- by way of cheque dated 4/04/2014. The bifurcation of the amount is placed on page 40 which scanned and reproduced here under: "Sub: Unit Link Surrender Policy Number: 0126351615/Receipt No: 0227095666/DOC: 27-MAR-14 Thank you for applying to Bajaj Allianz Life Insurance Company for a Life Insurance coverage. As per your request we have taken the Withdrawal/ Surrender action under the above policy Balance Amount: 6000000 Deductions Amount Total 0 Net Amount Payable 8144067 We hereby enclose a Cheque for Rs. 8144067 In words Eighty One Lac Forty Four Thousand Sixty Seven Only Vide Cheque no./NEFT 111326 dated 04-APR-14 towards the refund. Disclaimer: You have the option to receive the claims/maturity payments/other sum due to you from the Company through electronic mode. If you wish to receive the payment through electronic mode, kindly furnish your Bank Account details (Account No., Name & Address of the Bank and IFSC No.) along with a copy of cancelled cheque at the Office of the Company. Please ensure to keep your bank part....