J R DOSHI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference made under section 256(1) of the Income -tax Act, 1961, the following question has been referred to this court for opinion at the instance of the assessee :

(2.) THIS reference relates to the assessment year 1974 -75 having the corresponding previous year ended on March 31, 1974.

(3.) THE assessee, in his return of income filed on June 20, 1974, claimed that the sum of Rs. 45,000 paid by the company for purchase of the deferred annuity policy from the Life Insurance Corporation of India on his life was not includible in the computation of his income. The Income -tax Officer, however, held that the mount so paid was an item of perquisite to the assessee from the company and was includible in the computation of the assessee's income. On appeal by the assessee, the appellate Assistant Commissioner held that the said sum of Rs. 45,000 paid as premium to the Life Insurance Corporation of India could not be added to the income of the assessee as perquisite due to him during the year and ordered deletion thereof. On the Departmental appeal, the Income -tax Appellate Tribunal held that the said sum of Rs. 45,000 paid to the Life Insurance Corporation of India as premium for purchase of the deferred annuity policy was includible in the computation of the assessee's income as a part of salary and, as such, reversed the decision of the Appellate Assistant Commissioner and restored the order of the Income -tax Officer on this point. It is, in these circumstances, the present reference has been made at the instance of the assessee.