TMI Blog1970 (9) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... an individual. The assessment year is 1962-63. The accounting period ended on March 31, 1962. In the year 1962, the assessee took out an insurance policy from the Life Insurance Corporation of India. The sum assured was Rs. 25,000. The assessee had to pay five annual premiums of Rs. 4,687.50. As required under the insurance policy, the assessee paid the Corporation the sum of Rs. 4,687.50 in March,1962. The assessee claimed rebate for the sum of Rs 4,687 as premium paid under the insurance policy. The claim for rebate was disallowed by the Income-tax Officer. His view was upheld in appeal by the Appellate Assistant Commissioner and by the Appellate Tribunal. The Appellate tribunal, Delhi Bench " C ", has, at the request of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. The expression "life insurance business" has been defined in clause ( 11) of section 2 of the Insurarce Act, 1938 : " Life insurance business " means the business of effecting contracts of insurance upon human life, including any including whereby the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life . . . . " In the present case the assessee was entitled to collect the sum of Rs. 25,000 from the Life Insurance Corporation of India provided that he was alive on the date of maturity. Payment of Rs. 25,000 depended on the survival of the assessee up, to the date of maturity. Since liability of the Corporation depended on the happening of a continge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould v. Curtis . In that case the assessee entered into a policy described as double endowment assurance policy on his own life. He had to pay an annual premium of pound 11s. 8d. The sum assured was pound 200 payable at the expiration of 15 years if the assured was then alive, or pound payable on previous death without profits. It was held by Hamilton J. that the assessee was entitled to rebate on account of premium paid on the insurance policy. It was explained on page 298 that policies of this kind have been in use since the year 1805. The view taken by Hamilton J. was upheld in appeal. In Babulal Kanji v. Commissioner of Income-tax, it was observed by the Bombay High Court on page 671 : " While the contract must be that, in considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d was Rs. 25,000. Payment was conditional on the survival of the assessee. The Tribunal has referred to a booklet issued by the Life Insurance Corporation. The title of the booklet is Tax Laws and Life Insurance. In that booklet it is mentioned that a pure endowment policy has to satisfy two conditions. Firstly, the sum assured is payable on the life assured's surviving the endowment term. Secondly, in the event of the life assured's death within the term, all premiums paid are refundable. In the present case both the conditions are fulfilled. The Corporation has been doing business in life insurance since, the year 1956. The policy in question was issued in the year 1962. In the policy it was described as pure endowment assurance witho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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