ITAT deletes disallowance on Medical Insurance Premium provided to Family Members of the Employees [Read Order]

ITAT -disallowance - medical insurance premium - family members - employees - Taxscan

The Income Tax Appellate Tribunal (ITAT), New Delhi Bench deleted the disallowance on medical insurance premium of the family members of the employees.

The assessee, Loesche India Pvt. Ltd. has only one substantive ground of appeal where the disallowance of Rs. 12,44,970 made by the Assessing Officer in relation to medical insurance premium paid for the family members of the employees of the company on the ground that such expenditure though incurred in terms of contractual obligation with the employees.

However, it cannot be stated to have been incurred wholly and exclusively for the purpose of the business of the assessee, as confirmed by the CIT (A).

The assessee urged that the issue is squarely covered in favour of the assessee by the order of the co-ordinate bench in assessee’s own case for Assessment Year 2010-11 wherein the identical claim of the assessee was allowed.

Further for Assessment Year 2013-14 the CIT (Appeals) himself following the order of the co-ordinate bench for Assessment Year 2010-11 allowed the claim of the assessee in identical circumstances. Thus, the issue is squarely covered in favour of the assessee.

The coram consisting of Amit Shukla and Prashant Maharishi while allowing the appeal of the assessee directed the Assessing Officer to delete the disallowance of Rs. 12,44,970 in relation to medical insurance premium of the family members of the employees.

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