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Showing contexts for: 80ccc in Anisha Gulab Adnani, Mumbai vs Ito (Int. Tax) 1(1)(1), Mumbai on 12 December, 2023Matching Fragments
under section 80CCC of the Income Tax Act, 1961 out of the total addition of Rs. 1,48,62,600/- made by the Ld. Assessing Officer in respect of surrender value of Lifetime Super Pension Policy issued by ICICI Prudential Life Insurance Company being the amount received in respect of the said policy. The Ld. CIT(A) failed to appreciate that in absence of satisfaction of conditions of section 80CCC(2) of the Act, no addition in respect of Rs. 28,62,6000/- received on surrender of the said policy could be made.
[(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section, --
(a) [***]
(b) a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]]
5. We have gone through the grounds taken by the assessee and found that ground no. 1.1 is tenable in the light of provisions of section 10(10A) and section 80CCC(2) reproduced (supra). As far as ground no. 1.2 is concerned where assessee is talking about the nature of receipt as capital in nature is not tenable. In this matter section 10(10A) and 80CCC of the Act are the relevant section to be analyzed as mentioned (supra). In our observation issue involved is of two-fold, i.e. exemption provided in section 10(10A) of the Act simultaneously conditions as Ms. Anisha Gulab Adnani discussed in section 80CCC of the Act also. Chargeability under section 80CCC of the Act is linked to deduction claimed by the assessee, i.e. if no deduction is claimed, there is no chargeability as per section 80CCC (2) of the Act. In this fact is established and not under challenge by the revenue also that assessee has not claimed any deduction u/s. 80CCC of the Act, hence entitled to claim complete exemption u/s. 10(10A) of the Act subject to conditions prescribed in section 10(10A) of the Act itself.
6. We have gone through the orders of AO and Ld. CIT(A) on this issue and observed that nowhere in the order it is dealt specifically, that which of the conditions mentioned in section 10(10A) or 80CCC(2) of the Act are not satisfied by the Assessee. In our observation, there is no working done by the revenue to establish that assessee is in contravention to the conditions prescribed in section 80CCC (2) mentioned (supra), instead revenue relied upon the CBDT Circular No. 3/2017, issued in the year 2017 and the same does not pertain to the issue under consideration/not in existence at the relevant period under consideration. Secondly, the same may be binding on Income Tax Authorities and not on assessee.
7. Through the revised grounds, assessee raised the issue that amount received on surrender of policy should be treated as capital receipt, but on examination of matter after going through the provisions of section 80CCC (2) and section 10(10A) of the Act, we find that amount received by the assessee specifically dealt with by the sections mentioned (supra), hence the same cannot Ms. Anisha Gulab Adnani be treated as capital receipt. Still, same is exempted u/s. 10(10A) r.w.s. 80CCC (2) of the Act. Hence, as the claim of the assessee is tenable, same is allowed.