The Delhi Bench of Income Tax Appellate Tribunal ( ITAT )deleted the ₹9,640 disallowance for Life Insurance Corporation of India ( LIC ) premium deduction after the Assessing Officer ( AO ) accepted the additional evidence provided by the assessee.
Meena Gupta, appellant-assessee, filed her income tax return declaring ₹23,74,730, but her income was assessed at ₹1,45,44,630 under Section 153C read with Section 144 of the Act. A search on February 28, 2014, targeting the Rama and Param Group uncovered incriminating documents linked to her for the relevant year.
Based on these documents, the assessment included key additions such as ₹71,86,571 under Section 69A and ₹48,48,524 for construction/renovation expenses, among others, totaling ₹1,45,44,634.
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The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], who, after reviewing the written submissions, remand report, and rejoinder, granted partial relief. The CIT (A) upheld an addition of Rs. 48,84,524/- for construction/renovation expenses claimed in capital gains and an addition of Rs. 9,640/- for the deduction claimed under Section 80C of the Act.
The assessee filed an appeal before the tribunal aggrieved by the decision of the CIT (A).
The two member bench comprising Mahavir Singh (Vice President) and Brajesh Kumar Singh(Accountant Member) heard the appeal against the AO’s disallowance of Rs. 9,640/- claimed by the assessee under Section 80C for LIC premium.
Section 80C of the Act allows taxpayers to claim a deduction of up to ₹1.5 lakh on investments and expenses such as life insurance premiums, contributions to Provident Funds (EPF and PPF), investments in National Savings Certificates (NSC) and 5-year tax-saving fixed deposits, tuition fees for children’s education (up to two children), and principal repayment on home loans. The total deduction limit under this section is ₹1.5 lakh per year, covering all these eligible investments and expenses.
In the remand report dated 17.07.2018, the AO acknowledged that the claim was valid and the additional evidence provided by the assessee was correct. Based on this, the tribunal deleted the addition of Rs. 9,640/-.
In short,the appeal filed by the assessee was allowed.
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