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TMI Blog1977 (1) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... s an asset in the balance sheet. It is accepted that such payments of insurance premia on the husband's policies would have exceeded Rs. 50,000 before the accounting year we are concerned with. 2. Mr. Sundaram, the husband of the assessee, had taken several life insurance policies. There were endowment policies. In all these policies the nominee is the wife. He is an employee of the firm in which the assessee is the partner. His only income is salary, which is Rs. 12,000 per year. 3. During the accounting year we are concerned with, the assessee had made a gift to her husband of Rs. 50,000 representing a fixed deposit in a bank. Over and above this she had also paid the insurance premium of Rs. 11,880. In her income tax assessment she h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ren. The assessee has three daughters. The assessee's income during this year was Rs. 67,160. For the immediate prior year also her income was more or less the same figure. Her husband's income, on the other hand, is fixed salary income of Rs. 12,000. She, as the major income earner of the family, necessarily has to spend more in the maintenance of the family part of the maintenance of the family is payment of insurance policies taken by the husband. As we have stated earlier the nominee of the policies is the assessee. The husband could very well pay the insurance premium from his own salary in which case only a negligible amount would be left for meeting the household expenses. Instead of doing that they appear to have hit upon the idea o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the future also. One of the provisions normally made for the future is taking up of insurance policy. Such a policy has already been taken up by the assessee's husband. The beneficiaries of the policies would be herself and her children at a future date. So if the assessee keeps up the policy taken up by her husband by paying the insurance premia, she is only doing what she as the major income earner of the family, is obliged to do. Discharge of ones own personal obligation can never be called a gift. 9. It may also be looked at from the angle of s. 6 of the Married Women Property Act. Although the Act is not applicable to Hindus, s. 6(1) of the Act alone is made applicable to Hindus by virtue of sub-S. (2). Now, s. 6(1) says that a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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