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2014 (2) TMI 1022 - ITAT MUMBAIDisallowance u/s 10(10B) of the Act - Premium paid on Keyman Insurance Policies - Revenue was of the view that the policies were not Keyman Insurance Policies as given in the Explanation to section 10(10D) of the Act – Held that:- Once the assessee has bought a policy under a life insurance scheme, then whether the insurance company is making investment in mutual funds for capital appreciation or under any other investment scheme, will not make any material difference - it is clearly evident from the clauses of that it is these policies that it is for life insurance only - if the assessee surrenders the policy within the period of three years, then there is no surrender or maturity value. Under both the policies, the maturity value up to three years is zero - Once it is an admitted fact that the policy has been surrendered and it has been assigned to the policy holders on which no maturity amount or surrender value has been received, then such an observation of the CIT (A) does not make any difference - once the assessee after nursing these policies for some time by paying premium thereupon, has been assigned to the partners, then also the payment of such a premium has to be allowed as deduction – Relying upon Commissioner of Income-tax Versus Rajan Nanda [2011 (12) TMI 392 - DELHI HIGH COURT] – thus, the order of the CIT(A) set aside and the assessee is eligible for claiming deduction towards premium paid in respect of Keyman insurance policy and should be allowed accordingly – Decided in favour of Assessee.
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