Premium paid by company on insurance policy taken by director not allowable

Gadgil Holdings Pvt. Ltd Vs ITO (ITAT Pune) The issue in the present appeal relates to the allowability of insurance premium paid by the assessee company insuring the life of the director of the assessee company. A key man insurance policy of a life insurance company of India provides for insurance policy taken by businessmen or professional on the life of employees in order to protect business against financial losses which may occur from the employees’ premature death. The key man can be an employee or a director whose service was pursued to have significant affect on the profitability of ...