Held that the assessee had taken a loan and the same was utilised for its business purpose, and the loan was granted on condition of obtaining an insurance policy on the life of the partner. Accordingly, the insurance premium paid by the assessee was an allowable business expenditure. (AY. 2014-15)
Pankaj Enterprises. v. DCIT (2025) 214 ITD 702 (Mum) (Trib.)
S.37(1): Business expenditure-Insurance premium-Loan to firm on an insurance policy on the life of one of its partners-Insurance premium paid allowable as a deduction.
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