LAWS(CAL)-1976-3-25

REFORM FLOUR MILLS PVT LTD Vs. COMMISSIONER OF INCOME TAX

Decided On March 03, 1976
REFORM FLOUR MILLS (PVT) LTD. Appellant
V/S
COMMISSIONER OF INCOME-TAX Respondents

JUDGEMENT

(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:

(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.