2015 (8) TMI 1194

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....,A.M. 1. This appeal is filed by the Revenue against the order of CIT(A)-XI, Ahmedabad dated 13.09.2010 for A.Y. 2007-08. 2. The facts as culled out from the order of lower authorities are as under: 3. Assessee is a company engaged in the business of manufacturing lamination and trading of aluminum foils and trading of aluminum. Assessee filed its return of income for A.Y. 07-08 on 26.10.....

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....he Assessee with respect to allowing the premium as deduction was not found acceptable to the Assessing Officer. He accordingly worked out the premium by considering lower of the gross profit method/net profit method and 10 times remuneration and according to him the allowable premium worked out to Rs. 34.80 lakhs as against 4,50,00,000/- claimed by the Assessee. He accordingly disallowed the e....

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.... verified. Having perused the facts and circumstances of the case, I am of the view that the A. O. is not justified to make the disallowance of Keyman Insurance Premium payment on the ground that the appellant has made excessive payment of premium as per the guidelines of the Insurance Company. The A. O. has not appreciated the fact that the same Insurance Company itself has permitted the appellan....

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....g considered the above, I am of the view that the addition made by the A.O. is not in accordance with the law. Therefore, the A.O. is directed to allow the appellant's claim with regard to Keyman Insurance Premium payment. Accordingly, this ground of appeal is allowed." 3.2.4 In the light of the decision of my predecessor, the contentions of the A.R., the circular and case-laws relied on by him....