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The Tax Publishers Freewill Sports (P) Ltd. v. ACIT [ITA No. 20(Asr)/2013, dt. 22-3-2016] : 2016 TaxPub(DT) 2138 (Asr-Trib) Allowability of Keyman insurance in the wake of IRDA guidelines *Facts:* Assesssee had taken a keyman insurance on which the premia was disallowed by the assessing officer, dismissed by the Commissioner (Appeals) based on an ITAT ruling, the said ITAT ruling itself was recalled thus the appeal of the assessee also was heard: Held in favour of the assessee following Delhi high court ruling of CIT v. Rajan Nanda etc. [(2012) 349 ITR 8 (Del)] that no matter IRDA guidelines or norms the income-tax act did not contain any carveouts thus in line with IRDA hence key man insurance policy premium is an allowable expenditure. Business expediency, drop in turnover having no commercial benefit from key man policy, policy taken for benefit of partner are all afterthought hence is not a ground to disallow the key man insurance premia, thus held cited here.

The Tax Publishers

Freewill Sports (P) Ltd. v. ACIT [ITA No. 20(Asr)/2013, dt. 22-3-2016] : 2016 TaxPub(DT) 2138 (Asr-Trib)

Allowability of Keyman insurance in the wake of IRDA guidelines

Facts:

Assesssee had taken a keyman insurance on which the premia was disallowed by the assessing officer, dismissed by the Commissioner (Appeals) based on an ITAT ruling, the said ITAT ruling itself was recalled thus the appeal of the assessee also was heard:

Held in favour of the assessee following Delhi high court ruling of CIT v. Rajan Nanda etc. [(2012) 349 ITR 8 (Del)] that no matter IRDA guidelines or norms the income-tax act did not contain any carveouts thus in line with IRDA hence key man insurance policy premium is an allowable expenditure.

Business expediency, drop in turnover having no commercial benefit from key man policy, policy taken for benefit of partner are all afterthought hence is not a ground to disallow the key man insurance premia, thus held cited here.