2011 (11) TMI 446

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ppeal filed by the Department is directed against the order passed by the Commissioner of Income-tax (Appeals) on May 20, 2011, on the following grounds:- "1. That the learned Commissioner of Income-tax (Appeals) has erred in law and on facts in deleting the addition of Rs. 11,80,685 made by the Assessing Officer on the issue of Keyman Insurance premium paid on the life of partner. 2. That t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 11,18,865 was paid and claimed as expenditure by the assessee. The Assessing Officer however disallowed the same on the ground that the partner is not a separate and independent person from the partnership firm and therefore the payment of a keyman insurance premium in respect of the policy taken on the life of the partner amounts to claiming the deduction for self and therefore is not allowable....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y an assessee is allowable business expenditure. Besides the above, the judgment of the hon'ble Bombay High Court in the case of CIT v. B. N. Exports [2010] 323 ITR 178 (Bom) wherein it has been held that premium paid for keyman insurance policy taken on the life of the partner is admissible deduction in the hands of the partnership firm. The hon'ble High Court by relying upon the hon'ble Supreme ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he judgment of the Delhi Bench of the Tribunal in the case of P. G. Electronics v. ITO [2005] 98 TTJ Pelhi) 896 relied upon by learned counsel is also in favour of the appellant. Thus, the Assessing Officer has erred in concluding that the partners are not independent and distinct from the partnership firm for the purpose of section 10(10D) of the Act. Even the judgments relied upon by the Assessi....