Tribunal decision: Insurance expense upheld, tuition fees dismissed, maintenance expenses deleted.

The Tribunal upheld the disallowance of an insurance premium expense but directed the Assessing Officer to verify the consistency of past claims before allowing the deduction. The claim for tuition fees under section 80C was dismissed as not pressed. The ad-hoc disallowance of maintenance expenses was deemed unsustainable in law and was deleted, allowing the appellant's contention. The Tribunal partly allowed the appeal for statistical purposes, emphasizing the importance of consistency in claiming deductions and adherence to accounting principles for deductions to be allowed.

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Issues:
1. Disallowance of insurance policy expense.
2. Disallowance of tuition fees claimed under section 80C.
3. Ad-hoc disallowance of maintenance expenses.

Issue 1: Disallowance of Insurance Policy Expense:
The appellant contested the disallowance of an insurance premium expense of Rs. 73,367 by the Assessing Officer (AO) for the assessment year 2014-15. The AO disallowed the amount not pertaining to the year under consideration. The appellant argued for consistency in claiming the entire premium as a deduction in the year of payment, regardless of the period covered by the insurance. The appellant cited a Co-ordinate Bench decision supporting this approach. The Tribunal upheld the disallowance, emphasizing that under the mercantile system of accounting, deductions can only be claimed if the liability is incurred in the relevant year. The Tribunal directed the AO to verify the consistency of the appellant's past claims before allowing the deduction.

Issue 2: Disallowance of Tuition Fees under Section 80C:
The appellant did not press this ground during the hearing, leading to its dismissal as not pressed.

Issue 3: Ad-hoc Disallowance of Maintenance Expenses:
The Tribunal found the addition of maintenance expenses as an ad-hoc disallowance, which was deemed unsustainable in law. Consequently, the disallowance was deleted, and the ground raised by the appellant was allowed.

In conclusion, the Tribunal partly allowed the appeal for statistical purposes, dismissing the claim regarding tuition fees and allowing the appellant's contention against the ad-hoc disallowance of maintenance expenses. The judgment emphasized the importance of consistency in claiming deductions and the necessity for expenses to align with accounting principles for deductions to be allowed.

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