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4.1 Second submission canvassed by learned advocate for the petitioner was that the petitioner never claimed any deduction under Section 80CCC(1) of the Act in respect of pension policy. It was submitted that claiming such deduction was precondition for C/SCA/11251/2019 JUDGMENT DATED: 18/07/2022 taxing the surrender value in light of Section 80CCC(2) of the Act.

5.4 Weighty is the aspect also that petitioner never claimed any deduction under Section 80CCC(1) of the Act in respect of pension policy in question and taxing the surrender value of the policy claiming deduction was prerequisite.

5.5 Section 80CCC reads as under, "Deduction in respect of contribution to certain pension funds.

(1) Where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of 3 one hundred and fifty thousand rupees in the previous year. (2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-

5.6 A plain reading of sub-section (2) of section 80CCC of the Act shows that in case wherein the assessee has claimed deduction under sub-section (1) in respect of payment or deposit in relation to pension policy and subsequently, the assignee received such sum on account of surrender of such policy, in such case, the surrender value would be taxable.

5.7 In the facts of the present case however, the petitioner had neither claimed any deduction under sub-section (1) of Section 80CCC, nor it is the case of the respondent authority that the petitioner claimed such deduction, even in any of the earlier C/SCA/11251/2019 JUDGMENT DATED: 18/07/2022 years to make the surrender value taxable.

6.1 The satisfaction of the assessing officer that he had reason to believe that the income in the hands of the petitioner-assessee had escaped assessment, was without any foundation in law. By virtue of provisions of Section 80CCC (1) read with 80CCC(2), the petitioner had never claimed any deduction in respect of amount of pension policy to render the pension policy to attract liability of taxability.

7. For all the above reasons and discussions, the petition of the petitioner is entitled to succeed. The impugned notice dated 12.03.2019 issued by the respondent to the petitioner under Section 147 of the Income Tax Act, 1961, for the assessment in respect of assessment year 2013-14 seeking to reopen the C/SCA/11251/2019 JUDGMENT DATED: 18/07/2022 assessment is hereby set aside. The petition is allowed. Rule is made absolute.