Keyman Insurance Policy premium is allowable business expenditure

ITO Vs Creation Publicity Limited (ITAT Mumbai)

ITAT Mumbai held that a Keyman Insurance Policy provides for an insurance policy taken by a business organisation on the life of an employee and hence allowable as business expenditure.

Facts- The assessee had paid insurance premium for policies taken life of keyman of the company. The assessee had paid 6,79,007/- which according to AO is not allowable expenses as insurance paid was not purely life insurance

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