During the year, the assessee received a sum of Rs. 18,14,072/-as maturity proceeds of life insurance policy from Bajaj Allianz Insurance Company. The assessee computed the LTCG on the said maturity proceeds and offered a loss  of Rs. 3,26,569/-.The Assessing Officer assessed the receipt as income from other sources. On appeal the CIT (A) allowed the premium paid by the assessee and taxed the net receipt as income  from other sources.  On appeal the Tribunal held that entire maturity value/gains at time of extinguishment of rights of assessee in said policy i.e. on date of maturity were liable to be treated as capital, gains however, while computing capital gains, cost of acquisition will be taken as amount paid towards premium minus 20 per cent of sum assured, which amount shall be treated as not part of investment, rather towards cost of hedging of risk under insurance policy.  (AY. 2017-18)