KRISHNA CHAUHAN,SHIMLA vs. INCOME TAX OFFICER, WARD -1, SHIMLA

ITA 734/CHANDI/2025Status: DisposedITAT Chandigarh07 July 2026AY 2015-166 pages
AI SummaryDismissed

What were the facts?

The assessee surrendered a Unit Linked Insurance Pension Plan and received ₹16,33,885, of which ₹10,00,000 was the principal investment. The assessee argued that the principal amount should not be taxed and that the surrender was not premature, or alternatively, eligible for exemption under Section 10(23AAB).

What did the Tribunal hold?

The Tribunal held that the exemption under Section 10(23AAB) is not available as the statutory conditions were not fulfilled. Fiscal statutes must be interpreted strictly, and equitable considerations cannot override the express mandate of the law.

What were the issues?

Whether the amount received on premature surrender of a pension plan is eligible for exemption under Section 10(23AAB) when statutory conditions are not met.

Which sections of the Income-tax Act were involved?

Section 10(23AAB),Section 56(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH, ‘SMC’ CHANDIGARH

Before: SHRI LALIET KUMAR

For Appellant: Shri Pranav Jain, Advocate
For Respondent: Shri Prabodh Sharma, Addl. CIT, Sr.DR
Hearing: 25.06.2026Pronounced: 07.07.2026

The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 31.03.2025 passed for assessment year 2015-16. 2. The learned Authorised Representative submitted that the assessee had invested a sum of ₹10,00,000/- in a Unit Linked Insurance Pension Plan out of her own savings and no deduction under Chapter VI-A, particularly under section 80CCC, had ever been claimed at the time of making the investment. A.Y.2015-16 2

It was contended that the investment represented the assessee's own capital

and the same could not be brought to tax once again merel

The order continues below.

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