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TMI Blog1971 (8) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... paid not by the assessee but by the assessee's husband ? " The assessment year with which we are concerned is 1964-65. The assessee is P. K. Yeshodamma, wife of Shri P. Narayanan Vaidyar. The assessee and her husband were partners in a firm called Madhava Pharmaceutical Laboratories, Ernakulam. Shri P. Narayanan Vaidyar had taken out an insurance policy on his own life and the premium in regard to the same amounted to Rs. 6,000 and that was paid by him. In the assessment year 1964-65, the Income-tax Officer included in the income of the wife the share of the income of the husband from the aforesaid firm under section 64(i) of the Income-tax Act, 1961, by virtue of the Explanation thereto, which provides that where both the husband and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 87. (1) Subject to the provisions of this section, the assessee shall be entitled to a deduction, from the amount of income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on the following sums, namely :- (a) where the assessee is an individual, any sums paid in the previous year by the assessee out of his income chargeable to tax,- (i) to effect or to keep in force an insurance on the life of the assessee or on the life of the wife or husband of the assessee ; ........ " From the terms of the section it is clear that it is only the income-tax calculated at the average rate of income-tax on the sum paid by the assessee to eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... life has to be deducted in computing the tax payable by the assessee. We are unable to agree with this contention. It is doubtful whether the decision has any force in view of the form of return prescribed by rule 12, which expressly requires the individual to show in his or her return the income of the spouse or the minor child which falls within section 64. As we have already said, the section which permits the deduction is clear that it is the income-tax calculated at the average rate on the amount of the premium paid by the assessee to keep alive a policy on her life or the life of her husband that can be deducted from the income-tax on the total income of the assessee. Section 64(1) of the Act provides as follows : " In computing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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