Tribunal that the proceeds from LIC are exempt under S.  10(10D) except if the amount is received on a key man insurance policy, if the amount is received from a pension policy and the premium paid is more than 20 per cent.  of the sum assured in any year.  The proceeds from the insurance company in respect of key man insurance policy would be taxable only on receipt basis. In terms of the provisions of S.  2(24)(xi) read with S. 28(vi), the amount of bonus on key man insurance policy is to be taxed on receipt basis only.  Hence taxing the income on accrual basis was not valid.  (AY.   2006-07 2009-10, 2010-11, 2011-12).