CHANDULAL HARJIVANDAS, JAMNAGAR vs COMMISSIONER OF INCOME-TAX, GUJARAT

The Supreme Court ruled that under Section 15(1) of the Income-tax Act, 1922, a taxpayer is entitled to a rebate on insurance premiums if two conditions are met: (1) the premium must be paid by the taxpayer themselves, and (2) the insurance must be on the taxpayer's own life. In this case, although the policy was taken out by the father of the minor, the premiums were paid from the minor's taxable income, thus qualifying for the rebate. The Court held that the contract was effectively a life insurance policy for the minor, allowing the rebate to be granted.