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TMI Blog2018 (4) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... ursuance to resolution dated 24th February 2004 of board of directors and it has also been submitted before us by the learned Counsel for the assessee that the sum assured under the insurance policy as per the terms and conditions will come back to the assessee on the death of policy holders. We allow assessee’s claim of deduction of premium paid in both the assessment years. - Decided in favour of assessee - ITA no.5854/Mum./2016 And ITA no.5855/Mum./2016 - - - Dated:- 25-4-2018 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For The Assessee : Dr. K. Shivram a/w Ms. Neelam Jadhav For The Revenue : Shri Saurabh Kumar Rai ORDER PER SAKTIJIT DEY, J.M. Aforesaid appeals by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 37(1) and section 10(10D) of the Act would not apply to the premium paid, hence, cannot be allowed as business expenditure. Accordingly, he disallowed assessee s claim of deduction on account of premium paid in both the assessment years. Being aggrieved by the disallowance made by the Assessing Officer, assessee preferred appeals before the learned Commissioner (Appeals). However, the learned Commissioner (Appeals) held that the policy in respect of which the assessee has paid premium cannot be considered as Keyman Insurance policy as the name of nominee in case of death of the policy holder has not been mentioned. As a result of which the benefit of the sum insured will go to the descendant of the policy holder. He observed, neither th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, he drew our attention to the copies of the assessment orders placed in the paper book. The learned Authorised Representative submitted that the same policies continued for these assessment years as well. The learned Authorised Representative submitted, there being no change in facts, assessee s claim of deduction in respect of premium paid in such policies cannot be disallowed, as rule of consistency should apply. The learned Authorised Representative submitted that the observations of the learned Commissioner (Appeals) that, in absence of mentioning the name of the assessee as nominee in the insurance policy the sum insured will go to the descendents of the company, is totally irrelevant and without any basis since, the policy docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial has been brought on record by the assessee to prove the aforesaid fact. He, therefore, submitted that the deduction claimed by the assessee on account of premium paid has been rightly disallowed. 6. We have considered rival submissions and perused materials on record. Undisputedly, the deduction claimed by the assessee on account of premium paid is in respect of Keyman Insurance policy made in the name of two directors of the company. It is also not disputed that these Insurance policies with Birla Sunlife Insurance co. were made in the year 2004 and the assessee had claimed deduction of the premium paid in respect of such Insurance policy from assessment years 2005 06, 2006 07 and 2007 08. Notably, after examining assessee s claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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