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TMI Blog1982 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... nged to the HUF and not to the deceased alone. Reliance was placed on the Madras High Court decision in the case of CED vs. Smt. Y. Annapuranamba (1972) 84 ITR 756 (Mad). According to the Asstt. CED, however, since the wife was the nominee in respect of these policies, the policies were meant for the benefit and therefore the monies received on the policies constituted estate of the deceased. 2. The accountable person appealed before the Appellate CED. It was brought to his notice that the premia were paid out of the HUF funds. They were debited to the L.I.P. account in the books of account of the family where from the premia paid on the life of Karta Hiralal who was the father of the deceased Ramlal alone were debited. The proceeds of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention of the parties that though the premia were paid out of the funds of the family, the beneficiaries were ment to be the wife and children of the deceased. Further the ld. departmental representative has object to the total deletion of the sum assured received from the Life Insurance Corporation from the principal value of the estate. According to him, even if it was held that the amount belonged from the principle value. On behalf of the accountable person reference is made to the facts that the premia were paid out of the family funds and the proceeds of the policies were credited to the family books of account. It is also pointed out that in the income-tax proceedings of the family, the family had sought rebate from the income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was nominated to receive the benefits of the policies. Even the subsequent conduct of all the members of the family including wife leave nothing to doubt on this issue. Having been the nominee, wife received the money, but the money was promptly credited to the books of account of the family in the name of the family and not to the credit of the wife or any of the minor children of the deceased. In the circumstances in our opinion following the Supreme Court decision in the case of Smt. Parvati Kuor vs. Sarangdhar AIR 1960 SC 103, the accountable person is entitled to succeed. The appeal field by the revenue on this ground rejected. 5. The next issue between the parties is that during the course of the assessment proceedings the Asstt. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 163 : (1975) 101 ITR 539 (P H).The ld. departmental representative proceeded to argue that the ld. Judges of the Bombay High Court had laid down in the case of Manubhai A.Sheth Ors. vs. N.D.Nirudkar (1981) 21 CTR (Bom) 41 : (1981) 128 ITR 87 (Bom) that it is well settled that if certain provisions of Law construed in one way would make them consistent with the Constitution of India and another interpretation would render them unconstitutional the Court would lean in favour of the former construction. If necessary the Court would uphold the validity of a statute by reading down the provisions in question. In the circumstances, it is submitted on behalf of revenue that we should follow the other High Court decisions in preference to Madras ..... X X X X Extracts X X X X X X X X Extracts X X X X
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