New Delhi, Aug. 18 -- An Indian resident who bought a life insurance policy while working in Dubai has won a tax dispute after the Income Tax Appellate Tribunal ruled that the maturity proceeds could not be treated as undisclosed foreign income under the Black Money Act.

The Delhi Bench of the ITAT, in the case of Sarvesh Naidu for Assessment Year 2017-18, deleted an addition of Rs.40.03 lakh made by the tax department under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The tribunal also held that the exemption under Section 10(10D) of the Income-tax Act could not be denied merely because the life insurance policy had been issued by a foreign insurer.

Naidu received $52,896.76, equivalent to a...