The Hon’ble Tribunal allowed insurance premiums claimed as prepaid expenses incurred in the previous year on the grounds that the Assessee had not claimed any bogus expense and the books of accounts were audited and no defect was pointed out by the Assessing Officer during the assessment proceedings. Further, noting the fact that the Assessee had not been carrying out any business activity, it was observed that expenses claimed by Assessee cannot be said to be ineligible for deduction in the absence of business activity. This is so because the Assessee being a body corporate had to carry out necessary compliance to maintain its status and may incur certain administrative expense for the said purpose. (AY.2014-15)