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2014 (9) TMI 50 - GUJARAT HIGH COURTKeyman insurance premium deleted – Tribunal was of the view that the amount has earlier been also allowed as deduction – Held that:- The Tribunal has not decided the issue on merits and has dismissed the appeal solely on the ground of and considering the fact that with respect to AY 2005-06 the amount of premium on the Keyman Insuance Policy was held to be admissible deduction as business expenditure - when for AY 2005-06, the issue was sought to be re-opened by way of re-assessment proceedings which was set aside solely on the ground of jurisdiction and was not decided on merits, the Tribunal ought to have decided the issue on merits and has materially erred in considering the fact that for A.Y. 2005-06, the Revenue has accepted that the premium of Keyman Insurance Policy of the partners of the firm is wholly and exclusively for the purposes of business is allowable as business expenditure, however, factually, even for AY 2005-06 the said issue was sought to be re-opened by the Revenue by way of re-assessment proceedings – it was held to be bad on the ground of jurisdiction and not on merits – thus, the matter is liable to be set aside and matter remitted back to the Tribunal to decide the appeal – Decided in favour of Revenue.
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