| Case ID |
16104766-514b-4b6f-a615-175b54e5eda6 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No.103 of 1983 |
| Decision Date |
Mar 22, 1984 |
| Hearing Date |
|
| Decision |
The Supreme Court of Bangladesh ruled that the appeal by the Commissioner of Income Tax was justified in denying the exemption claim for the investment in bonus shares. The Court emphasized that bonus shares issued by a company are considered income of the company and not of the individual assessee. The investment in bonus shares does not form part of the total income of the assessee, and therefore, the claim for exemption under Section 15C of the Income Tax Act cannot be upheld. The judgment of the High Court Division was reversed, and the appeal was allowed without costs. |
| Summary |
In the landmark case of Civil Appeal No. 103 of 1983, the Supreme Court of Bangladesh addressed the critical issue of tax exemptions related to bonus shares under the Income Tax Act of 1922. The case revolved around whether the investment in bonus shares could be treated as part of the total income of the assessee, Abdul Aziz, who sought exemption under Section 15C. The appellant, represented by A.M. Mahmudur Rahman and Muhammad Sajjadul Haq, argued that the bonus shares should be treated as an investment, while the respondent contended that they constituted income of the company, thus not qualifying for tax exemption. The Court ultimately ruled in favor of the Commissioner of Income Tax, affirming that bonus shares do not contribute to the individual income of the assessee, thereby disallowing the exemption claim. This decision sets a precedent in tax law regarding the treatment of bonus shares, emphasizing the distinction between corporate income and individual tax liabilities. The case highlights the complexities of tax law and the importance of clear definitions regarding income and investments. It serves as a critical reference for future cases involving tax exemptions and the treatment of corporate benefits. Keywords such as 'income tax exemption', 'bonus shares', and 'tax law precedent' are essential for understanding the implications of this ruling. |
| Court |
Supreme Court of Bangladesh
|
| Entities Involved |
Not available
|
| Judges |
BADRUL HAIDER CHAUDHURY,
SHAHABUDDIN AHMAD,
A.T.M. MASUD,
MUHAMMAD MOHSEN ALI
|
| Lawyers |
A.M. Mahmudur Rahman,
Muhammad Sajjadul Haq,
S.M. Hossain,
Sharif-ud-Din Chaklader
|
| Petitioners |
COMMISSIONER OF THE INCOME TAX
|
| Respondents |
ABDUL AZIZ,
MESSRS NOVITAS INTERNATIONAL,
Income Tax OFFICER. (FILM CIRCLE) AND OTHERS
|
| Citations |
1985 SLD 69,
1985 PTD 396,
(1985) 52 TAX 119
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
15,
2(6A),
15(2)(3)(4),
15C
|