Law:

Section:

Section 87(1)(a) (now section 80C) of the Income-tax Act, 1961 - Deduction in respect of life insurance premium, contribution to provident funds etc. - Assessment year 1964-65 - Assessee and her husband were partners in a firm - ITO included in income of assessee, share of income of husband from aforesaid firm under section 64(i) - Whether, assessee was entitled to rebate under section 87(1)(a) in respect of life insurance premium paid by husband for securing insurance on his own life - Held, no Words and phrases : Word 'assessee' occurring in section 87(1)(a) FACTS The assessee and her husband were partners in a firm. The husband had taken out an insurance policy on his own life and the premium in regard to the same was paid by him. In the assessment year 1964-65, the ITO included in the income of the wife the share of the income of the husband from the aforesaid firm under section 64(i). The ITO however did not grant the rebate claimed by the assessee under section 87(1)(a) in respect of life insurance premium paid by the husband for securing an insurance on his own life. The AAC agreed with the ITO and said that in order to qualify for rebate under section 87(1)(a),the premium should have been paid by the assessee herself. The Tribunal also dismissed the assessee's appeal. On reference : HELD It is only the income-tax calculated at the average rate of income-tax on the sum paid by the assessee to effect or keep in force an insurance on the life of the assessee or on the life of the wife or the husband of the assessee that can be deducted from the income-tax on his total income chargeable for the assessment year. In other words, to qualify for the rebate permissible under the section the premium must have been paid by the assessee and not by her husband on his own policy. The contention that the income of the husband was included in the income of the assessee, and if the husband had been assessed separately he would have become qualified to get the rebate of income-tax in respect of the insurance premia paid by him had no merit, for the reason that section 87 is explicit on the point. It is not possible to interpret the section in such a manner as to give a…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492