| Case ID |
0ab871c1-0137-4280-8361-55d3fe5bccd4 |
| Body |
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| Case Number |
CIVIL REFERENCE No. 69 OF 1938 |
| Decision Date |
May 09, 1940 |
| Hearing Date |
|
| Decision |
The court held that the law and statutory rules applicable for determining the assessment must be those in force for the year of the assessment, and not those in force during the year in which the income was earned. The appeal was dismissed, confirming that the exemption for interest on Government Securities was limited to Rs. 22,500, based on the applicable notifications. The case was ultimately decided in favor of the revenue. |
| Summary |
In the case of Sind Hindu Provident Funds Society vs. Commissioner of Income Tax, the Sindh High Court addressed the applicability of certain government notifications regarding income tax exemptions for the assessment year 1937-38. The crux of the case revolved around whether the relevant notifications from 1935 and 1936 were applicable to the income earned in the previous year. The court clarified that the assessment must rely on the laws in force during the assessment year, thus limiting the exemption on interest income to Rs. 22,500 as per the amended notifications. This ruling emphasized the importance of adhering to statutory laws and regulations relevant to the year of assessment, reinforcing the principle that exemptions cannot be claimed based on outdated notifications. The decision highlighted the necessity for clear understanding and compliance with tax regulations, especially for entities managing provident funds and similar financial instruments. |
| Court |
Sindh High Court
|
| Entities Involved |
Commissioner of Income Tax,
Sind Hindu Provident Funds Society
|
| Judges |
DAVIS, C.J.,
LOBO, J.
|
| Lawyers |
Partabrai D. Punvani,
Hukumatrai M. Eidnani
|
| Petitioners |
Sind Hindu Provident Funds Society
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1940 SLD 12,
(1940) 8 ITR 467
|
| Other Citations |
Jattashah Nathashah v. CIT AIR 1932 Lah. 575
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
3,
2(11)
|