TaxTMI 
TaxTMI 
2013 (11) TMI 1655
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....he Act') has been set aside. Counsel for the revenue submits that as the Insurance Regulatory and Development Authority has issued a circular directing Insurance Companies not to issue Keyman Insurance Policies (KIP), particularly in relation to the life of partners of a firm, the circulars issued by the Income Tax Department allowing deductions on account of premium paid against such policies is no longer applicable. The order passed by Commissioner of Income Tax after recording that the assessment order allowing deductions for premium paid on Keyman Insurance Policies is erroneous and prejudicial to the interest of the revenue has been wrongly set aside by the Income Tax Appellate Tribunal. Counsel for the assessee submits that as c....
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....uce an extract from the order recorded by the ITAT, which reads as follows:- "13. In the facts of the present case before us, the assessment in this case was completed u/s 143(3) of the Act. During the course of assessment proceedings the Assessing Officer requisitioned the assessee to explain the nature of expenditure claimed on account of insurance charges. Further query was raised regarding the admissibility of the said expenses. The assessee in reply stated that the said expenditure was laid out on account of keyman insurance charges paid on the lives of the partners of the assessee firm. The claim of the assessee was that the said expenditure was allowable in view of the CBDT Circular No. 762 dated 18.2.1998 issued in this regard. The....