ACIT 25(3), MUMBAI V. KEMCO CORPORATION, MUMBAI

ITA 4513/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1694 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 30-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K MAHAJAN
• Assessee Lawyers: PRAVIN SARVAIYA
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, MUMBAI BEFORE SHRI R.V. EASWAR, SENIOR VICE-PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 4513/MUM/2009 (ASSESSMENT YEAR: 2006-07) ACIT 25(3) M/S. KEMCO CORPORATION C-11, ROOM NO. 308, PRATYAKSHAKAR A-1, APRIL ENCALV E, GROUND FLOOR BHAVAN, BANDRA-KURLA COMPLEX VS. MAHAVIR NAGAR, GREATER BOMBAY CO-OP BANDRA (E), MUMBAI 400051 BANK, KANDIVALI (W), MUM BAI 400067 PAN - AACFK 3418 L APPELLANT RESPONDENT APPELLANT BY: SHRI K.K. MAHAJAN RESPONDENT BY: SHRI PRAVIN SARVAIYA O R D E R PER B. RAMAKOTAIAH, A.M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE CIT(A) XXV, MUMBAI DATED 29.05.2009. 2. THE ONLY ISSUED CONTESTED BY THE REVENUE IN THIS A PPEAL IS THE ALLOWANCE OF KEYMAN INSURANCE PREMIUM OF RS.15,00,0 00/- PAID ON TWO PARTNERS OF THE FIRM. THE A.O. DISALLOWED AN AMOUNT OF RS.16,58,680/- WHEREAS THE CIT(A) ON EXAMINATION NOTICED THAT THE ACTUAL PAYMENT WAS ONLY RS.15,00,000/- AND ACCORDINGLY DIRECTED THE A. O. TO ALLOW THE KEYMAN INSURANCE OF RS.15,00,000/-. THE CIT(A) FOLLOWED TH E PROVISIONS OF SECTION 10(10D), CBDT CIRCULAR 762 DATED 18.02.1998 AND THE DECISION OF THE ITAT B BENCH, MUMBAI IN THE CASE OF ITO VS. MODI MOTOR S 27 SOT 476. THE REVENUE IS AGGRIEVED. 3. AT THE OUTSET IT WAS INFORMED THAT THIS ISSUE WAS D ECIDED BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. B. N. EXPORTS 323 ITR 178. RESPECTFULLY FOLLOWING THE ABOVE JUDGEMENT, WE DO N OT FIND ANY MISTAKE IN THE ORDER OF THE CIT(A) WHO ALLOWED THE INSURANCE P REMIUM PAID FOR THE ITA NO. 4513/MUM/2009 M/S. KEMCO CORPORATION 2 PARTNERS OF KEYMAN INSURANCE POLICY TO INSURE THE L IFE OF THE PARTNERS AS BUSINESS EXPENDITURE . 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY 2010. SD/- SD/- (R.V. EASWAR) (B. RAMAKOTAIAH) SENIOR VICE-PRESIDENT ACCOUNTANT MEMBER MUMBAI, DATED: 31 ST MAY 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXV, MUMBAI 4. THE CIT XXV, MUMBAI CITY 5. THE DR, A BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.