2026 (7) TMI 611

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.... deduction under Chapter VI-A, particularly under section 80CCC, had ever been claimed at the time of making the investment. It was contended that the investment represented the assessee's own capital and the same could not be brought to tax once again merely because the policy was surrendered. 3. The Ld. AR further submitted that the assessee had received a total sum of Rs.16,33,885/- on surrender of the policy, out of which Rs.10,00,000/- represented the principal amount invested by the assessee. According to him, only the appreciation, if at all taxable under the provisions of the Act, could be subjected to tax and the principal amount could never be treated as income. It was argued that taxing the entire receipt would amount to t....

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....utory provisions, has correctly upheld the action of the Assessing Officer. Therefore, no interference is called for and the order of the learned CIT(A) deserves to be affirmed. 8. We have heard the rival submissions, carefully perused the orders of the authorities below and examined the material placed on record. The solitary issue requiring adjudication is whether the amount received by the assessee on premature surrender of the Unit Linked Insurance Pension Plan is eligible for exemption under section 10(23AAB) of the Income-tax Act, 1961. 9. The undisputed facts reveal that the assessee had surrendered the pension policy before satisfying the statutory conditions prescribed for claiming exemption under section 10(23AAB) of the Act....