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of <h1>High Courts Affirm Keyman Insurance for Partners as Business Expense; CBDT Advises No Further Appeals.</h1> The circular addresses the admissibility of a firm's expenditure on Keyman Insurance Policy premiums for a partner. Historically, such expenses were often disallowed by assessing officers, but several High Court rulings have upheld their admissibility as business expenditures. These courts have clarified that Keyman Insurance is not limited to employees but includes partners, considering their role in the business. The High Court of Punjab and Haryana emphasized that such policies protect the firm from business disruptions due to a partner's premature death. The Central Board of Direct Taxes (CBDT) accepts this position, advising against further appeals on this issue.
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