DCIT, NEW DELHI vs. SHRI NAVLEEN SINGH KHANNA, NEW DELHI

The only issue raised by the Revenue in its appeal is against the deletion of addition of Rs.52,25,368/- made by the Assessing Officer u/s 56(2)(iv) of the Act.

Briefly stated, the facts of the case are that the assessee received a sum of Rs.52,25,368/- as surrendered value of ‘Kotak Safe Investment Plan – Kotak Guaranteed Growth’ representing maturity value of ‘Keyman Life Insurance Policy.’ This amount was received by the assessee and claimed as exempt u/s 10(10D) of the Act. The Assessing Officer observed that M/s Tegh International debited a sum of Rs.19,99,701/- for assessment years 2005-06 and 2006-07. Since the partnership firm assigned this policy to the partners of the firm including the assessee, the Assessing Officer held that the maturity amount was CO No.378/Del/2014 chargeable to tax u/s 56(2)(iv) of the Act. The ld.CIT(A) deleted the addition.

After considering the rival submissions and perusing the relevant material on record, we find that similar issue came up for consideration before the Tribunal in another partner of the same firm, namely, Shri Kavinder Singh Khanna. Vide order dated 31.08.2016, the Tribunal in has decided the issue in the assessee’s favour. A copy of such order has been placed on record. The ld. DR fairly admitted that the facts and circumstances of the instant case are, mutatis mutandis, similar to those considered and decided by the Tribunal in the case of Shri Kavinder Singh Khanna (supra). Respectfully following the precedent, we uphold the impugned order.

The assessee did not press its Cross Objection.