COMMISSIONER OF INCOME TAX Vs. GIRA SARABHAI

JUDGEMENT

(1.) AT the instance of CIT, Gujarat I, Ahmedabad, the Tribunal, Ahmedabad Bench 'B', has made the reference to this Court under S. 256(1) of the IT Act, 1961 ('the Act' for short), as the Tribunal was satisfied that 8 questions of law arise out of the order dt. 29th Nov., 1979 passed by it in ITA Nos. 233 and 228 (Ahd)/78 79 relating to asst. year 1973 74.

(2.) THE assessee, Smt. Gira Sarabhai derives income from partnership firms as well as by way of remuneration as one of the directors in different companies, dividends and insurance commission, etc. The assessee submitted return on 23rd Jan., 1974 showing an income of Rs. 1,39,810.

(3.) BEFORE the ITO, the assessee claimed exemption of medical reimbursement of Rs. 6,428 received from two companies. The assessee claimed exemption for the said amount in view of the Circular No. 33 (LXXV 1.5) of 1955, dt. 1st Aug., 1955 issued by the Board. The ITO took the view that the Circular was applicable only in the case of the employees and the assessee being not an employee of the companies from which she had received reimbursement of medical expenses, the claim was not allowed.