made by Assessing Officer on the issue of
keyman Insurance premium paid on the life of partner.
2. That the Ld.CIT(A) has erred ... which say that. " For the
purposes of this clause, "Keyman Insurance policy" means a life
insurance policy taken by a person
claimed by the assessee on
2
account of keyman insurance on the life of Shri Rakesh
Kapoor, one of the partners of the assessee firm ... that there is no evidence to show that the policy is a
keyman insurance and the second was that the partners
are not independent
response to the same, the assessee replied
that the premium paid on Keyman Insurance Policy is
allowable deduction and is covered under Circular ... assessee was that the receipt on account
of maturity of Keyman Insurance Policy together with
bonus is taxable in the hands of the company, therefore
confirming the addition of Rs. 20,00,000/- (Twenty
lacs) being the Keyman Insurance Premium paid on the lifE of two
directors namely Shri Gaurav ... Shri
N.K.Jain Rs. 10,00,000/- out of keyman Insurance premium Rs.
41,27,000/- paid on the life of three directors
made by AO on
the issue of Keyman Insurance premium paid on the life
of partner.
2. That the ld. CIT(A) has erred ... which say that, "For
the purposes this clause,"keyman insurance policy' means
a life insurance policy taken by a person
PCIT noticed
that the assessee had debited Rs. 10 lacs as 'Keyman Insurance Policy'
ITA No. 772/Chd/2017-
M/s Worldwide Immigration ... explained in this
respect that the assessee company took a unit linked keyman insurance
policy from Max Life Insurance. As per the insurance premium receipt
expenses of Head Office:-
Apportioned
Directors Remuneration Rs.1,02,00,000/-
Keyman Insurance 30,82,210/-
Financial Expenses 25,14,832/-
(Interest only ... expenses of Head Office:-
Apportioned
Directors Remuneration Rs.1,02,00,000/-
Keyman Insurance 30,82,210/-
Financial Expenses 25,14,832/-
(Interest only
account of disallowance of expenditure incurred by the
assessee on Keyman Insurance Policy.
3. After hearing both the parties we find that during assessment
proceedings ... query was raised regarding payment towards Keyman
insurance. In response it was submitted that vide letter dt 7.8.2010 and
11.8.2010 as under:-
2
"Reply
Ludhiana has erred in holding that the Premium paid on Keyman Insurance policy is to be allowed on accrual basis and thus the maximum amount ... Singla. He also noticed that the insurance policies in respect of aforesaid Keyman were purchased in February, 2005. He further noticed that
erred in upholding the contention of the Assessing Officer
to allow Keyman Insurance Premium with respect to only one
partner as per para ... unambiguously explained in the circular that there can be
only one Keyman to whom payment of Insurance Premium is
allowable expense is not correct
