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TMI Blog2022 (8) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... of premium paid on this insurance product. If the assessee has not claimed deduction u/s 80C of the Act in respect of premium amount paid on this insurance product, then the above said loss should be treated as Capital loss and nothing should be brought to tax, since it supports the stand of the assessee that he has treated these payments as his investment. On the contrary, if the assessee has claimed deduction of the premium amount paid on this insurance product, then the AO is required to deal with the surrender value in accordance with law. Since this matter requires verification, we set aside the order passed by Ld CIT(A) and restore the same to the file of the AO for examining this issue - Appeal filed by the assessee is treated as all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee while processing the return of income u/s 143(1)(a) of the Act. Accordingly, the tax demand was raised upon the assessee. Not agreeing with the adjustment so made, the assessee filed rectification application under section 154 of the Act but the same was rejected. Hence, the assessee filed appeal before learned CIT(A). 4. In the appellate proceedings, the learned CIT(A) took the view that it is the duty of the assessee to offer income corresponding to TDS amount of Rs.3,700/-. Since the assessee has failed to offer the same, the Ld CIT(A) held that the amount of Rs.3,69,999/- was rightly added by the AO while processing assessment under section 143(1)(a) of the Act. Accordingly, the learned CIT(A) took the view that the order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the surrender value as income of the assessee, as it represents receipt of capital amount only. Accordingly, he submitted that the Ld CIT(A) was not justified in confirming the addition without appreciating the factual aspects surrounding the issue. 6. The Learned DR, on the contrary supported the order passed by learned CIT(A). 7. I have heard the rival contention and perused the record. I noticed that the assessee has actually incurred a loss of Rs. 3,20,768/- in respect of investment made in the insurance policy taken from ICICI Prudential Life Insurance company Limited. According to learned AR, the assessee has held this life insurance policy as an investment product only. The Ld A.R supported this contention by submitting tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d A.R that the assessee has treated the payment of insurance premium as his investment product only. According to Ld A.R, the assessee has not claimed insurance premium as deduction u/s 80C of the Act. If that be the case, in my view, the intention of the assessee would determine the nature of the transaction. If the assessee s intention was to treat the premium payments as his investment, then the the provisions of sec. 10(10D) should not be applied. 9. It is noticed in the instant case that the assessee has not earned any income on surrender of insurance policy. On the contrary, the assessee has only incurred loss of Rs.3,20,769/-. However, in my view, it is required to be examined as to whether the assessee has claimed deduction u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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