Keyman Insurance Policy Proceeds taxable on receipt basis

Conclusion – As per section 14 (2) it is duty cast upon the AO to examine the claim of assessee having regards the account and only where the AO is not satisfied procedure prescribed u/r 8D can be followed. The proceeds from Insurance company, in respect of Keyman Policy, will be taxable only on receipt basis. Facts – Disallowance of commission expenses – AO noted that assessee has paid excess commission expenses and disallowed the same u/s 36(1)(ii). AO noted that 15% increase is adequate and remaining amount is held to be unreasonable and accordingly made addition u/s 40A(2)(b). AO con...