Law: Income Tax Ordinance, 1979

Section: Sched.II,PartI,cl.41A,59 Sched. II

Law: Income Tax Rules, 1922

Section: R. 17

Income-tax Ordinance (XXXI of 1979)--S. 59 Sched. II, Part I; cl. 41-A--Income-tax Rules, 1923, R. 17-Honorarium and medical allowance received by employee of Board of Intermediate and Secondary Education--Exemption.I.T.A. No.5405/LB of 1986-87 fol.ORDER This is a Departmental appeal relating to the assessment year 1985-86. The assessee in the case is an employee of the Board of Intermediate and Secondary Education Multan and derives income from salary. The facts of the case are that 1 the assessee had claimed exemption for honorarium and medical allowance received from the Board of Intermediate and Secondary Education, Multan the I.T.O. in his order under section 59 (1) disallowed the assessee's claim under the provisions of subsection (3) of the said section 59 but did not indicate any reasons for the disallowance. The assessee filed an appeal against the I T O's order before the Act of A A C of Income tax Range-B, Multan. It was contended before the A A C that as regards the honorarium received by the assessee it, was exempt under clause (4-A) of the Second Schedule, Part- I to the Income-tax Ordinance since the assessee was an employee of the Government of the Punjab. With regard to the medical allowance it was claimed that this was exempt under rule17 of the Income-tax Rules. ' 2. In his appellate order the A A C referred to a decision of the A A C, Faisalabad in which he had held honorarium to be exempt under clause (4-A), in similar circumstances. Following the decision of the A A C, Faisalabad, therefore, the A A .C. Multan directed that the honorarium be treated as exempt in the assessee's case. With regard to the question of medical allowance the A A C again referred to a decision of the A A C, Faisalabad in which the latter had directed that the appellant's claim be accepted. The A.A.C, Multan, however, other wrote that in the Sargodha case assessee had furnished a certificate to the effect that the amount of the "medical expenses" received by him had been totally spent during the relevant period on medical treatment. The A A C observed that no such certificate had been furnished in the instant case and he directed that the assessee be…