https://www.taxtmi.com/caselaws?id=249958 Premium paid on unit linked insurance policies claimed as Keyman Insurance Policy was held not allowable as business expenditure. The policies were examined in substance and found to be investment-linked products with guaranteed returns, where only a small part provided mortality cover and the balance was deployed in investment funds. Applying the Explanation to section 10(10D) and the scheme of section 37, the analysis concluded that a Keyman Insurance Policy must reflect genuine life cover taken for business protection. IRDA circulars were treated as clarifying that keyman cover should not extend beyond term assurance. On those facts, the premium was disallowed and the disallowance sustained. en-us Tue, 13 May 2014 00:00:00 +0530 Tue, 29 Jul 2014 09:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249958 Premium paid on unit linked insurance policies claimed as Keyman Insurance Policy was held not allowable as business expenditure. The policies were examined in substance and found to be investment-linked products with guaranteed returns, where only a small part provided mortality cover and the balance was deployed in investment funds. Applying the Explanation to section 10(10D) and the scheme of section 37, the analysis concluded that a Keyman Insurance Policy must reflect genuine life cover taken for business protection. IRDA circulars were treated as clarifying that keyman cover should not extend beyond term assurance. On those facts, the premium was disallowed and the disallowance sustained. Case-Laws Income Tax Tue, 13 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249958