UNITECH MARKETING SERVICES, MUMBAI V. DCIT CIR12(2), MUMBAI

ITA 6438/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1067 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 15-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 14-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R M TIWARI
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 6438/MUM/2009 (ASSESSMENT YEAR: 2006-07) M/S. UNITECH MARKETING SERVICES ACIT, CIRCLE 12(2) 113, JOLLY BHAVAN NO. 1 AAYAKAR BHAVAN, M.K. ROAD 10, NEW MARINE LINES VS. MUMBAI 400020 MUMBAI 400020 PAN - AAAFU 7279 F APPELLANT RESPONDENT APPELLANT BY: SHRI SATISH MODY RESPONDENT BY: SHRI R.M. TIWARI O R D E R PER B. RAMAKOTAIAH, A.M. THE ISSUE IN THIS APPEAL RAISED BY THE ASSESSEE AGA INST THE ORDER OF THE CIT(A) XII, MUMBAI DATED 28.10.2009 IS WITH REFEREN CE TO THE CLAIM OF KEYMAN INSURANCE PREMIUM PAID BY THE FIRM FOR THE W ORKING PARTNERS. 2. THE ASSESSEE HAD DEBITED AN AMOUNT OF RS.4,99,608/- ON ACCOUNT OF KEYMAN INSURANCE PREMIUM PAID ON THE LIFE OF TWO PA RTNERS ON THE POLICY TAKEN BY THE FIRM. THE A.O. DID NOT ALLOW THE EXPEN DITURE STATING THAT THERE IS NO EMPLOYEE - EMPLOYER RELATIONSHIP BETWEEN THE FIRM AND THE PARTNERS. ASSESSEE RELIED ON THE DECISION OF THE ITAT IN THE CASE OF ITO VS. MODI MOTORS 27 SOT 476 (MUM) BUT THE CIT(A) DISTINGUISHE D THE SAME AND REJECTED THE CONTENTIONS HOLDING THAT THE SAID ORDE R WAS GIVEN IN THE CONTEXT OF CLAIMING KEYMAN INSURANCE POLICY ONLY FOR TWO PA RTNERS OF THE FOUR PARTNERS WHEREAS IN THE PRESENT ASSESSEES CASE THE POLICY WAS TAKEN ON ALL THE PARTNERS, I.E. BOTH THE PARTNERS. HE, THEREFORE , REJECTED THE CLAIM. 3. AT THE OUTSET IT WAS SUBMITTED THAT THE HON'BLE BOM BAY HIGH COURT IN THE CASE OF BN EXPORTS 323 ITR 178 HAS ALLOWED THE PREMIUM AND THE DECISION IS IN FAVOUR OF THE ASSESSEE. IN VIEW OF T HE JURISDICTIONAL HIGH COURT JUDGEMENT ABOVE, WHICH ALLOWED THE PREMIUM PAID ON KEYMAN INSURANCE ITA NO. 6438/MUM/2009 M/S. UNITECH MARKETING SERVICES 2 POLICY FOR THE PARTNER AS BUSINESS EXPENDITURE ON S IMILAR FACTS, ASSESSEES GROUND IS ALLOWED. 4. IN THE RESULT, APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JULY 2010. SD/- SD/- (N.V. VASUDEVAN) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 23 RD JULY 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXIII, MUMBAI 4. THE CIT XII, MUMBAI CITY 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.