REFORM FLOUR MILLS PVT LTD Vs. COMMISSIONER OF INCOME TAX
LAWS(CAL)-1976-3-25
HIGH COURT OF CALCUTTA
Decided on March 03,1976

REFORM FLOUR MILLS (PVT) LTD. Appellant
VERSUS
COMMISSIONER OF INCOME-TAX Respondents





Cited Judgements :-

COMMISSIONER OF INCOME TAX VS. KARAM CHAND THAPAR AND BROS P LTD [LAWS(CAL)-1978-4-65] [REFERRED TO]
B C PAUL VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1980-9-27] [REFERRED TO]
MALAYALAM PLANTATIONS INDIA LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(KER)-1990-2-48] [REFERRED TO]


JUDGEMENT

Dipak Kumar Sen, J. - (1.)The assessee. Reform Flour Mills (Pvt.) Ltd.; Calcutta, has initiated this reference under Section 66(2) of the I.T, Act, 1922. As directed by this court, the Tribunal has referred the following question:
" Whether, on the facts and in the circumstances of the case, the disallowances made in the year 1960-61, under Section 10(4A) of the I.T. Act, 1922, in respect of the sum of Rs. 12,000 being a part of the remuneration paid and a sum of Rs. 4,500 being the value of the free furnished accommodation provided for the managing director, Sri Mahabir Prasad Jatia, was right in law ? "

(2.)The facts found and/or admitted in this reference are, inter alia, that the assessee is a private limited company. The assessment year involved is 1960-61. The corresponding previous year is the year ended 31st December, 1959. Under a resolution dated the 3rd October, 1959, Mahabir Prasad Jatia and G. D. Jatia were appointed the joint managing directors of the assessee with effect from the 1st October, 1958, for a term of 5 years. They were sanctioned remuneration of Rs. 3,000 per month each and in addition were provided with free furnished accommodation, which were valued at Rs. 4,500 each.
(3.)It is found that Mahabir Prasad Jatia at the relevant time suffered from a serious physical handicap in that he had an almost totally impaired vision.
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