An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as

Question

Quizplus · Accepted Answer

Insurance premium against risk of damage or destruction of stocks or stores used for business purposes is considered revenue expenditure because it is a recurring expense aimed at protecting the operational assets of the business, not creating a new asset or extending its life.

An Assessee Paid Insurance Premium Against Risk of Damage or Destruction