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TMI Blog2013 (7) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... ,33,136/-. Other grounds in all the three appeals were not pressed, therefore, they are dismissed being not pressed. 2. Facts relating to adjudication of issue regarding allowability of Keyman insurance policy premium are that the assessee has paid such premium in respect of Shri Habibur Rahman F. Ansari, who is brother of the assessee. It was claimed by the assessee that his brother is deemed employee of the assessee and he is handling sales, collection and production of the factory of the assessee namely Mujeebur Reheman F. Ansari. The assessee has also executed a power of attorney in favour of his brother specifying therein that in his absence his brother will take care of the business activity for which no fees or remuneration is cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties on this issue and we find that this issue is no more res-integra as the issue is covered by the decision of Hon ble Bombay High Court in the case of CIT vs. B.N.Exports, 323 ITR 178 (Bom), wherein it has been held that Keyman insurance policy has not confined to a situation where there is a contract on employment. For the purpose of section 10(10D), a Keyman Insurance Policy means a life insurance policy taken by a person on the life of another person who is or was in employment as well as on a person who is or was connected in any manner whatsoever with the business of the subscriber. The words is or was connected in any manner whatsoever with the business of the subscriber are wider than what would be subsumed under a contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that the said brother of the assessee will take care of business activities carried on by the assessee. As mentioned earlier, the words found in section 10(10D) i.e. is or was connected in any manner whatsoever with the business are wider than what would be subsumed under a contract of employment, therefore, those words will cover the premium paid by the assessee for his brother who was looking after the business of the assessee. The AO has not brought any adverse material on record to show that those contentions of the assessee as recorded in the assessment order in para -6 for assessment year 2004-05, are either incorrect or false. In this view of the situation, after hearing both the parties and after considering the facts of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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