Company A in which public is not substantially interested has received dividend from another company. The company proposes to take a policy in the name of a director cum shareholder who is holding more than 10% of voting power on which director will be receiving interest which will be accounted as his personal income. However, the one time premium paid to LIC will be shown as an asset in the books of the company. On maturity of the policy or death of the Director, LIC will pay the amount to the company. Which sections of Income Tax Act are applicable here? (is Section 2(22)(e) or 60 attracted?)
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