https://www.taxtmi.com/caselaws?id=49589 The SC dismissed an appeal regarding whether payments to an insurance company for policy premiums constituted deductible expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The Court held that the payments were contingent liabilities rather than actual expenditure, as money was merely set aside with trustees/insurance company for potential annuity purchases but could be returned if not utilized. The Court distinguished between actual existing liabilities and contingent arrangements, ruling that deductible expenditure must be towards presently existing liabilities, not future contingent ones. The Calcutta HC's decision was upheld. en-us Tue, 05 May 1959 00:00:00 +0530 Tue, 01 Jul 2025 18:47:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49589 The SC dismissed an appeal regarding whether payments to an insurance company for policy premiums constituted deductible expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The Court held that the payments were contingent liabilities rather than actual expenditure, as money was merely set aside with trustees/insurance company for potential annuity purchases but could be returned if not utilized. The Court distinguished between actual existing liabilities and contingent arrangements, ruling that deductible expenditure must be towards presently existing liabilities, not future contingent ones. The Calcutta HC's decision was upheld. Case-Laws Income Tax Tue, 05 May 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49589