that since the
expenditure incurred on the premia paid on the said keyman
insurance policies was much more that the amount realized
by the assessee ... Assessing Officer by disallowing the
business expenditure claimed in respect of keyman
insurance premium?"
12. Mr. N.P. Sahni, learned counsel who appeared
which reads as under:-
Taxation of sum received under the Keyman Insurance Policy
14.1 Keyman Insurance Policy of the Life Insurance Corporation of India ... which may occur from the employee's
premature death. The "Keyman" is an employee or a director, whose services
are perceived
Escotel
Mobile Communication Ltd. and M/s Escorts Ltd. had taken keyman
insurance policy with Shri Ranjan Nanda the assessee as keyman.
These companies paid ... crux of the issue revolves around treatment of status of
keyman policy on assignment to keyman. The earlier letter of LIC
dated 21.3.2006 as furnished
maturing proceeds of certain life insurance
polices which were originally taken as keyman insurance policies but later
assigned to the appellant at their respective surrender ... noted that asessee has received the
following amounts towards maturity of following keyman policies from LIC:-
S.No. Date of receipt Policy No. Maturing Taken
details collected from LIC regarding the terms and conditions of
keyman insurance policy, nowhere it was mentioned as such. Hence he
brought ... Income Tax (Appeals) that identical issue regarding
taxability of maturity value of keyman policy was involved in the case of the
assessee for the assessment
1690/DEL/2010
A.Y. 2007-08
being maturity of keyman insurance policy. The same had not been reflected in
the computation of income stating ... Assessing Officer further noted that the total premium
paid under keyman insurance policy No. 112683959 is Rs. 3,18,62,295/- and the
maturity value
Assessing Officer on the ground of disallowed
insurance premium paid under "Keyman Insurance Policy."
3. The brief facts of the case are that ... observed that
in view of the legislature 'Keyman' is either an employee of the
organization or any other salaried person
which
reads as under:
"Taxation of a sum received under the Keyman Insurance
Policy
14.1 Keyman Insurance Policy of the Life Insurance
Corporation ... which may occur from the employee's premature death. The
"Keyman" is an employee or a direction whose services are perceived
deletion of addition
made on excess premium paid on Keyman's Insurance Policy by the
learned CIT(A). The assessee company had debited ... lacs on
account of Keyman Insurance Premium Expenses. However, based on the
IRD guidelines, the learned AO worked out the allowable premium
passed the order without
understanding the nature of the keyman insurance policy
after its assignment by the firm to the appellant ... clarification from
Birla Sun life Insurance that after the assignment of
keyman policy, the policy is covered under individual
status and looses the identity
