BABULAL KANJI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 66 of the Indian Income-tax Act and the question referred to us is, whether, upon the facts found by the Tribunal, the sum of Rs. 5,276 is a permissible deduction under Section 15(1) of the Indian Income-tax Act. The sum of Rs. 5,276 represents the larger sum of Rs. 5,813, being the total annual premium of the policy of insurance to which I am about to refer. The sum of Rs. 5,813 has been scaled down to Rs. 5,276, because the assessee has another insurance policy and the premiums on the two policies added together exceed the total exemption allowed by the Income-tax Act. The question as framed in this reference in substance raises two questions of law for our consideration, first, has there has been an insurance on the life of the assessee, and, if so, secondly, what was the amount of the annual premium paid in the accounting year, which is 1942-43, for effecting such insurance. The relevant section of the Act provides :-