Assigning Keyman Insurance Policy 2 days before end of lock-in period held ‘malafide’; surrendered v

IT : A firm assigned a Keyman Insurance Policy to its partner just two days before completion of lock-in period and on that it had nil surrender value - The ITAT held that such assignment was made with a malafide intention so that the surrendered value could escape taxability in the hands of the employee - Therefore, the amount received under Keyman Insurance Policy would be taxable in the hands of partner