Case Law Details

Case Name : ITO Vs. Gem Art (ITAT Ahemdabad)
Appeal Number : ITA No. 2975/Ahd/2009
Date of Judgement/Order : 05/09/2011
Related Assessment Year : 2006- 07
Courts : All ITAT (5025) ITAT Ahmedabad (366)

ITO Vs. Gem Art (ITAT, Ahmedabad)

CIT(A) deleted addition on account of key man insurance policy relying on ITAT|s decision in assessee|s own case for assessment year 2005- 06 in which the Tribunal in ITA No. 1722/Ahd/2008, date 6-3-2009 and held that premium paid under key man insurance policy on the life of the partners cannot be disallowed. Revenue contended that they had not accepted the order of the Tribunal on this issue for assessment year 2005-06 and appeal was filed before the Gujarat High Court. Held: Merely because the department did not accept the order of Tribunal deleting addition on account of key man insurance premium, and preferred appeal before the High Court, it is no ground to take a different view.

ITO Vs. Gem Art

In the ITAT, Ahmedabad C Bench

ITA No. 2975/Ahd/2009

5 September, 2011 A.Y. 2006- 07

 

ORDER

This appeal by the revenue is directed against the order of the learned Commissioner (Appeals)-IV, Surat dated 28th July, 2009 for the assessment year 2006- 07, challenging the order of the learned Commissioner (Appeals) in deleting the addition of Rs. 15,00,000 on account of key man insurance.

2. The learned Commissioner (Appeals) noted that similar issue of premium paid towards key man insurance policy is covered by ITATs decision in assessees own case for assessment year 2005-06 in which the Tribunal in ITA No. 1722/Ahd/2008 dated 6-3-2009 has held that premium paid under key man insurance policy on the life of the partners cannot be disallowed. The learned Commissioner (Appeals) following the order of the Tribunal in the case of the same assessee for earlier year deleted the addition and allowed the appeal of the assessee.

3. None appeared on behalf of the assessee. However, written submission is forwarded containing the order of the Tribunal above for preceding assessment year 2005-06. The learned Departmental Representative referred to the statement of fact in which it was stated that the department has not accepted the order of the Tribunal on this issue for assessment year 2005-06 and appeal is filed before the Honorable Gujarat High Court.

4. On consideration of the above facts. We do not find any merit in this ground of appeal of the revenue. On the similar issue admittedly the Tribunal dismissed the departmental appeal in ITA No. 1722/Ahd/2008 for assessment year 2005-06 vide order dated 6-3-2009. The issue is, therefore, covered in favor of the assessee. Merely because the department preferred appeal before the Honorable High Court is no ground to take a different view. The learned Commissioner (Appeals), therefore, rightly followed the order of the Tribunal for deleting the addition.

5. In the result, the appeal of the revenue is dismissed.

Order pronounced in the open Court.

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Category : Income Tax (27249)
Type : Judiciary (11449)
Tags : ITAT Judgments (5210)

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