Respondent
No.5 unduly changed the designation of Respondent No.5 as Keyman in
the year 1987. When this process was going on petitioner filed ... application that he being senior should be designated as Keyman. This
application is dated 17.03.1987. The said application was not considered
three years. The
nomenclature of the policy was shown as "Keyman Insurance Policy". The
AO disallowed the claim of deduction on account ... claimed
deduction u/s 10(1OD) of the Act on account of Keyman Insurance Policy
premium paid on the life insurance policies
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
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
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
disallowing premium paid of
Rs.3,59,600/- towards Keyman Insurance Policy."
3. Ground No.1 relates to disallowance of 20% of expenses ... disallowance of the premium of Rs.3,59,600/-
paid towards Keyman Insurance Policy.
7. The A.O., during the assessment proceedings observed that though
case and in law the
learned CIT(A) erred in allowing Keyman Insurance premium
amounting to Rs.25 lakhs, overlooking the fact that the expenditure ... that in its P&L Account, the
assessee has debited keyman insurance amounting to
Rs.25,00,000/-. The assessee was requested to state
erred in confirming the disallowance
of premium paid on Keyman's policy of one of the directors
amounting ... disallowance of Rs. 2,13,709/- being the premium paid on
keyman policy of LIC. The brief facts are that the AO observed
during
made by the Assessing Office on account of premium paid on Keyman
insurance policy of more than one director.
6. That the appellant craves ... Revenue's appeal the issue relates to premium
paid on Keyman insurance policy. Assessee had taken keyman insurance policy in
the name
