9911796707
TMI Blog2010 (3) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 26-12-2006. 2. The only issue in this appeal of the Revenue is against the order of CIT(A) deleting the addition made by the Assessing Officer on account of disallowance of premium paid for Keyman Insurance Policy. For this, Revenue has raised the following ground No.1;- (1) On the fats and in the circumstances of the case and in law the ld. CIT(A)- IV, Surat has erred in directing to delete the addition of ₹ 15,00,000/- on account of disallowance of premium paid for Keyman Insurance Policy. 3. At the outset Ld. Counsel for the assessee filed a copy of Tribunal s order in ITA No.1722/Ahd/2008 dated 06-03-2009 and stated that exactly on same facts, and the issue being exactly identical, the issue of Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance Policy including the sum allocated by way of bonus on such policy for this purpose. 14.4 The Finance (No.2) Act, 1996, also lays down that the sums received by the said organization on such policies, be taxed as business profits; the surrender value of th9e policy, endorsed in favour of the employee (Keyman), or the sum received by him at the time of retirement be taken as profits in lieu of salary for tax purposes and in case of other persons having no employeremployee relationship, the surrender value of the policy or the sum received under the policy be taken as income from other sources and taxed accordingly. The premium paid on the Keyman Insurance Policy is allowed as business expenditure. 14.5 The amendments ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the doubts at rest, in the last sentence of para 14.4 that The premium paid on the Keyman Insurance Policy is allowed as business expenditure. In the light of the above amendments and the circular clarifying the position relating to the allowability of the premium paid on Keyman Insurance Policy, the CIT, in my view, was not justified in directing the AO to disallow the premium paid by the assessee-firm in respect of the life of partner Anurag Gupta, assured under the Keyman Insurance Policy, as can be seen from para 2 of the order of the CIT. Therefore, the order of the CIT cannot be sustained as it runs counter to the amendments made to the Act as clarified by the circular issued by the CBDT. It is well-settled that ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30,000/- from staff welfare expenses, ₹ 25,000/- on foreign traveling and ₹ 44,400/- on telephone expenses. 6. After hearing the rival contentions and going through the case records including assessment order, order of CIT(A) and assessee s paper book, we find that foreign travel expense debited by the assessee to the profit loss account at ₹ 16,61,740/-. The Assessing Officer disallowed 10% of foreign travel expenses on the ground of possible personal use and the CIT(A) restricted the disallowance at a token of ₹ 25,000/-. Before us also Ld. counsel for the assessee has not denied the possible personal expenditure incurred on account of foreign travel and in view of this fact, we find no infirmity in the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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