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TMI Blog1971 (8) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... W J.-This is a reference made at the instance of the assessee under section 256(1) of the Income-tax Act, 1961. The question of law referred is : " Whether, on the facts and in the circumstances of the case, the assessee was entitled to the rebate contemplated under section 87(1)(a) of the Income-tax Act, 1961, in respect of the sum of Rs. 6,000 being the insurance premium on the policy of the life of the assessee's husband paid not by the assessee but by the assessee's husband ? " The assessment year with which we are concerned is 1964-65. The assessee is P. K. Yeshodamma, wife of Shri P. Narayanan Vaidyar. The assessee and her husband were partners in a firm called Madhava Pharmaceutical Laboratories, Ernakulam. Shri P. Narayanan Vai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the premium paid by him on the policy. The Income-tax Appellate Tribunal to which an appeal was preferred by the assessee agreed with the view of the authorities below and dismissed the appeal. The question has to be decided on the basis of section 87(1)(a) of the Income-tax Act, 1961. This section has been omitted with effect from 1st April, 1968, by the Finance (No. 2) Act of 1967. The section reads as follows: " 87. (1) Subject to the provisions of this section, the assessee shall be entitled to a deduction, from the amount of income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on the following sums, namely : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on an assessee to include in his return the income of the wife or minor child, which was includible in the total income under section 16(3) of the Income-tax Act, 1922, and said that the income that is assessed is not only the income of the assessee, but also the income of her husband ; and that the income-tax calculated at the average rate of income-tax on the sum paid as premia by the husband to keep in force the policy on his life has to be deducted in computing the tax payable by the assessee. We are unable to agree with this contention. It is doubtful whether the decision has any force in view of the form of return prescribed by rule 12, which expressly requires the individual to show in his or her return the income of the spouse o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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