No rational basis to confine allowability of expenditure incurred on premium paid towards Keyman Insurance policy only in respect of life of an employee

DECIDED BY: HIGH COURT OF BOMBAY, IN THE CASE OF: CIT Vs. B. N. Exports, APPEAL NO: ITA No. 2714 of 2009, DECIDED ON: March 31, 2010 RELEVANT PARAGRAPH The effect of Clause 10 ­D is that a sum received under a life insurance policy is not to be included in computing the total income of any person. However, a sum received under a Key man Insurance Policy forms a part of the total income and is liable to be offered to tax. For the purposes of Clause 10D, a Key man Insurance Policy is a life insurance policy taken by a person on the life of another person who is or was the employee of the perso...