| Case ID |
3ce12a4d-633d-41bd-a9ce-b6a6508c3369 |
| Body |
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| Case Number |
Reference Case No. 13 of 1969 |
| Decision Date |
Oct 20, 1969 |
| Hearing Date |
|
| Decision |
The Dacca High Court held that the Income-tax Appellate Tribunal correctly limited the exemption of the entertainment allowance to Rs. 3,000 as prescribed by Rule 39 of the Income Tax Rules, 1922. The case involved an assessment year where the petitioner, M. Mahmood Ispahani, claimed that the entire entertainment allowance of Rs. 12,000 received as a Director was exempt from tax under Section 4(3)(vi) of the Income Tax Act. However, the Appellate Assistant Commissioner and the Tribunal maintained that the exemption must adhere to the limitations set by the relevant rules, emphasizing that the Tribunal’s duty includes clearly stating facts and decisions in their referrals to the High Court. |
| Summary |
In the case of M. Mahmood Ispahani vs. Commissioner of Income Tax, the Dacca High Court addressed the issue of entertainment allowance exemptions under the Income Tax Act, 1922. The case primarily revolved around the interpretation of Section 4(3)(vi) concerning the allowable exemption limits for entertainment expenses incurred by a company director. The court reaffirmed the need for clarity and completeness in the Tribunal's statements when referring cases for opinion. The decision underscored that while directors may claim allowances for entertainment, such claims are limited by specific rules, notably Rule 39 of the Income Tax Rules. The ruling is significant for tax law practitioners and highlights the importance of adherence to procedural norms in tax assessments. Key phrases such as 'income tax exemption', 'entertainment allowance', and 'tax law compliance' are essential for understanding the implications of this case. |
| Court |
Dacca High Court
|
| Entities Involved |
Not available
|
| Judges |
A.S. Chowdhury,
Nurul Islam
|
| Lawyers |
Muhammad Hasan,
Afzalul Haque
|
| Petitioners |
M. Mahmood Ispahani
|
| Respondents |
Commissioner of Income Tax, Chittagong Zone, Chittagong
|
| Citations |
1970 SLD 724,
(1970) 22 TAX 54
|
| Other Citations |
Hutheesingh (P.M.) & Sons Ltd. v. Commissioner of Income-tax (1946) I4 I.T.R. 653,
Sohan Pathak & Sons v. Commissioner of Income-tax (1953) 24 I.T.R. 395,
Hanmantram Ramnath v. Commissioner of Income-tax (1945) I3 I.T.R. 203
|
| Laws Involved |
Income Tax Act, 1922,
Income Tax Rules, 1922
|
| Sections |
4(3)(vi),
4(3)(1),
66(1),
66,
66(2),
7,
4(1),
4(1)(a),
4(1)(b),
4(1)(c),
4(3),
59(2)(dd),
7(1),
12(1),
Schedule 8(b),
8(b),
39
|