RAVI KUMAR MEHRA Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS judgment shall dispose of Income-tax References Nos. 72 and 73 of 1978 as identical questions of law in both of them have been referred for the opinion of this court and the facts which give rise to them are also similar.

(2.) THE question of law which has been referred by the Income-tax Appellate Tribunal, Amritsar Bench (for short "the Tribunal), is to the following effect: " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in disallowing deduction under Section 80c of the Income-tax Act, 1961, on life insurance premia paid of Rs. 6,304 ? "

(3.) IT would suffice to make a brief reference to the facts of Income-tax Reference No. 72 of 1978. The status of the assessee is Hindu undivided family. Return of income for the assessment year 1973-74 pertaining to the accounting years ending March 31, 1972, and March 31, 1973, was furnished by the assessee. The business income shown therein is to the following effect: Business income: Rs. Rs. (i) Shares from the firm, M/s. Lal Oil and Chemical Mills, Amritsar, as per books subject to rectification under section 154/155 on completion of assessment In that case. Profit 48,112 Interest 2,893 51,005 51,00 5 (ii) Share in the firm, M/s Lal Woollen and Silk Mills, Amritsar, as per books subject to rectification Under section 154/155 on completion of assessment in that case: Profit 34,083 Interest 22,400 56,483 56,48 3 1,07,4 88