Chandulal Harjivandas, Jamnagar v. Commissioner Of Income-Tax, Gujarat

1.8.C.R[1967] Usa) G95 eo nw 2S bby Ett Otet SU (115140 1922 WIAa Mkt SA Sim BinaBouteSearlFc alre Secr eee SGMP FL ty StPtrSUK 1959 WL oer!SEO Piri £ Filbate ene Ty KPHeLaLe lettUege ar bf‘obpes<brTieSuton} | (i dt éBit byrorSette hicbsbniL dS bei SeVa FP GS rt bal il S bute”NerL ta Sie MoteECP rule tlh thet Sele Buranchet bare SL WL UAeShit = GULL UAIRV[totogort]petEstrinSayreSabine BEI be SPSRaetaAr LS ttc S menL oetLe brdlrane2 butjetod £61 -1960N-L PU vebatto iUe Foto tleSH CLF, AE or! te FL eI (415 sf 1922 AE sie o£ EebebeUP UE IP deefre heb A NPEDPtyt Siretl ad LES[oe][Fil][i][ie]eth arrie bbe GGL LEStee,SeniUSFBiotec beelidUF hee bbb eCAle bibleer iAIe ue Lsubkfy Kaaheoid iveUbRWB lePPHe LL SeEnCee sbhSale otk Eusigngjeskee ee FL (415 sig tg Sind ula oleate 1965! 684Akizr Ldidlys laMiidthl 1963 <9 L btwn 420Koc FL 1962 LL cbbuceZ tito Sbdut Ue3 Ute hedPAL 1962 — dC 1963 9 Lede Serfie il ebb, ule“fssts-5 GUE20,AUia 1sPavSELLESL «50000 L Leste KA1959 W223Meer AL ie WRKUsaUe de:28 FS Siefie rtalecaUF fies WBsied_3 1925 Abe isi koteHL thberFinleylik Chek! Let =1960 L ko PEStl ce buteho192527£2 hoi(4)15 shCarel etieL wi2)1922 hi AyeAeshehAe sbkuiveSutPiAM bbeegiL bwKOA debitAGA etePeomeeSerSneutbseem utubuye bt bepetdWu CEBU Gebers: Voir tit dbotten di bitudustScteblgt Lire ge US| letsetekIREWL NUistLaclebad— linda SardES Pie DN Spee2Lod GtuhB VO aL WPaleen LL Cre eerPfEeebb Pb 58Se pe S Warde lect Pie KSI Ue Ebley JiUEShaBeKLIKPatera ae mesial boteets GutCNUE toa nLRLMeeSE PbMeltL eyKU~lF thou le SI SerehePpSPUeh thLP"bthge Lk sb ane Coletti toie Ut SeisLc ceibesth vede UereULXIXE 1925 ]1925 «Lt!Beanecr tlheVitaeoebetEin ko? LUAL Uricots By Ie F Otel iL ete SIto fieiEeiikoeble kay"A Son E inky,Uaioeeal“LawlFL39 a8SLi AG iretSALreeled A Bikee wie ksier SL tlstLatSShe" ne UEbeEikodiehre Law SsWebeArtoLidge turrrutL LS Kb ee ads Ss stata"tebebiG Arai Seite a cheesi Se nl S30,eb ure tyfesseSSGotbeGrbe LICACaine ley SAulbe Or 8 bY tube SeyDh HotL Pl BS ithLucker evdte EireBpshaeFl OLSelese Po G bhLE PaitstleubatrtoeWeb eteitunSe benfiGeitcde<buteTebttee2 WeeESAaeeeBukPidAppelLtue rite Liwit dte EtudesSieSebifitout bebet Pl iSdaLe Ciuterinebrelttl we tbetupttfe be Es Scitc hi GuiSh SiO iadackitu dy Sty KeiHe Le ale L aPier Ade tne sde < GtrPruten(Sif CL19826011KailGuturLEGye UP Ute i AL8 SitbelIL 1965 G11 EstES Keefe Vay FP Gre i Siyid-250000 6 AetigtPuy 6,SWISLZhe Arle lttlie Bide Burret ALUt outerEt ELGG ute thlegenotSUP tee Aire ees PEtre elsA(Danke Sid se otdieuSgwi vl LE SeredaEyFS 6 hear te wourr GGL LE Gtx Ser Siee EinsSoberFleut but SeUP EinSeMele neUe UBFFL (415 shelig Eze trlUES [Sid][ Gls][ pe][ tb]ee UUGLtoBei rtidie eleSpAealSGUhfe KP BogleSW sig outLe rales Sst SL Se bec Ib lor SFised tletied AreMise etl dlaVoLWik diuttL tiler KL EstPrep yr SESSSele(Leregle‘ienbretietyde &,ArseneT sepSebelEOE) Pal)War Arte SohnAeolvremLoen teemidice uteeuie beeC bthbyhbselend ey MP BL dtlezbdeieLl SiSiegligeStetfarL PeSPSMeruOPKerestpLES breeMe Ue et bree rp tie ngbeb ieGub11 Fie dew£L Siid_1/50000 iAte t diCHITIN[&]nfPieeI SodanAL Fins,Oryeerasl Beet£F14982AGM aUte uolene the k ibe1965 Gl11 Eran bitupFB teFy GiL ot Geri iriL bobRP Lalla ii iitegesLSetpenSS WIL AMteteeMAtoAokibedbbte SieportetietwmtucdSpdvozdx293536 riepi ew (273 MoabiW et VLBILS We thyListeIIesh teeAisi£ ohL PAS tetYeokigeWLisleFinke DicerSutil esoLie iLrage938iPhe Ut AertelebthbuizecTeil ByteutetreSo Ait 11)2 2h f44161938 ) gor h Pue dF ce SstelUl Lae Sei BUIees eg"alteboaShe, beiSOILeveEber dedbooksEus&wehbeEi Gc EEene Se Mirae besauienUlOlBer S Sbtce aeS50(115 ai SeteSbtdateuBoreb UPlege Lcd ee be ohSe SIE AS2 B2FLN15 siSyitevileutes,Cor Kr,cepMSU CallFestLogp EIN SGUWL AL lekolinE obi SVUA 2 bbb al L eblAL Wound uesb Sie UsulezetSeley = bbws CHANDULAL HARJIVANDAS, JAMNAGAR COMMISSIONER OF INCOME-TAX, GUJARAT. October 14, 1966 (J.C. SHAH AND V. RAMASWAMI, JJ.) Income-tax Act (11 of 1922), s. 15(1)-Children's Deferred Endow-ment Assurance-Assured a minor-Proposer of insuranc.e his father-Payment of premium out of taxable incorn, of assured-If entitled to rebate of income-tax. The father of the assessee was the proposer, in 1959, of a policy called c Children's Deferred Endowment Assurance, the life assured being that of the assessee, who was a minor. Under the contract of insurance, the Life Insurance Corporation of India Was liable to pay the sum assured (a) on the stipulated date of maturity, if the life assured was alive on that date, or (b) if the life assured were to die before that date, provided that the death occurred on or after the deferred date specified in the policy. A s~ cial clause of the policy provided that at any time after attaming majonty and before the deferred date, the life assured may adopt the policy and on D such adoption, the policy was to be a contract between the Corporation and the life assured as the absolute owner of the policy from the date of such adoption. In the absence of such adoption it was the proposer who would be entitled to the amounts payable by the Corporation, and not the assessee. Further, if the assessee were to die before the deferred date the policy would stand cancelled and it was the proposer and not the heirs of the assessee who would get back the premiums paid. The premium pay-E able in respect of the policy was, however, paid out of the taxable income of the assessee. In the course of the assessment for the assessment year 1960-61 the assessee claimed rebate on the premium paid under the provi-sions of s. 15 ( 1) of the Income-tax, 1922. The Department, the Appel-late Tribunal and the High Court, on reference, held against the assessee. In appeal to this Court, F HELD : In order to get exemption from payment of tax two conditions have to be satisfied under the section, namely, (i) the premium must have been paid by th~ assessee himself; and (ii) the payment must have been made to effect an insurance on the life of the assessee himself. The con-tract of insurance in the present case, between the assessee's father and the Corporation must be read as a whole and so read, in· spite of the cl~uses referred to, it was in substance a contract of life. insurance with regard to the life of the assessee. As the premium was paid by the assessee out of G his taxable income, rebate under s. 15(1) was admissible on the premium paid. [924 E, HJ CIVIL APPELLATE JURISDICTION : Civil Appeal No. 684 of 1965. Appeal from the judgment and order dated September 9. 1963 H of the Gujarat High Court in Income-tax Reference No. 20 of 1962. I. N. Shroff. for the appellant. Ml 7SupCI/66-1 l S. T. Desai, Gopal Singh and R. N. Sachthcy, for the respon- dent. The J udgmcnt of the Court was dclil'ered by Ramaswami, J. This appeal is brought, by certificate, from the judgment of the High· Court of Gujarat dated September 9, 1963 in Income-tax Reference No. 20 of 1962. On June 23, 1959, a policy called "Ch:ldren's Deferred Endow-