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TMI Blog2011 (11) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 the learned Commissioner of Income-tax (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 as business expenditure. On appeal, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides 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 Court judgment in the case of Bist and Sons v. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Assessing Officer have been discussed and considered in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exports [2010] 323 ITR 178 (Bom), Modi Motors [2009] 27 SOT 476 (Mumbai) and P. G. Electronics [2005] 98 TTJ (Delhi) 896. All the aforesaid decisions cover the issue under appeal against the Department and in favour of the assessee. In this view of the matter, the order passed by the learned Commissioner of Income-tax (Appeals) is confirmed. The appeal filed by the Department is dismissed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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