Law: Income Tax Ordinance, 1979

Section: 136,136(1)

Income Tax Ordinance (XXXI of 1979)----S.136 (1)---Income Tax Rules, 1982, R.3 (2) (c)---Employee of company---Director of more than one company---Exemption on perquisites---Assessing officer declined to give exemption on perquisites for the reason that the assessee was not full time director of one company---Validity---It had been nowhere stipulated in R.3 (2) (c) of Income Tax Rules, 1982, that simply being director in more than one companies at one time, would oust such, director from the definition of an "employee", which only said that the director should be working "whole time for one company"---Income Tax Appellate Tribunal rightly observed that as a fact at one point of time, assessee worked only for one company and during the relevant period he neither rendered his services nor received any benefits from the other company--Assessee though remained associated with two companies in one assessment year but he claimed benefits regarding one salary and emoluments thereof---Assessee was entitled to exemptions on perquisites to the extent of one company---Exemptions were claimed by assessee with regard to one company and he had neither received benefit nor claimed exemption with regard to two companies at one time---As exemption was claimed with regard to one salary and benefit thereof, the assessee fell within the definition of employee, within the contemplation of clause (c) of R.3 (2) of Income Tax Rules, 1982---High Court declined to interfere in the passed by Income Tax Appellate Tribunal---Appeal was dismissed in circumstances. Commissioner of Income Tax v. Mazhar Hussain 1988 PTD 563 distinguished. ORDER Through this appeal under section 136(1) of the Income Tax Ordinance, 1979 (the repealed Ordinance) the Revenue has challenged the judgment of the Income Tax Appellate Tribunal (the ITAT) in I.T.A. No.1561/LB of 1997, dated 28-5-1998. The only issue involved is the correct interpretation of clause (c) of sub-rule (2) of Rule 3 of the Income Tax Rules, 1982 (now repealed), which is as under:-- "(c) "employee" includes a director of a company working whole time for one company". Now if the assessee fulfilled the criterion of being an "employee" in terms…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492