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 policies. AO has mainly disallowed the claim stating that the word, ‘Keyman’ was not written by the insurance company on the receipt iss...