SATYANARAYAN RUNGTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under Section 256(1) of the I.T. Act, 1961. The statement of the case relates to the assessment years 1963-64 and 1964-65.

(2.) The assessee is an individual. He was an employee of a company. In the accounting years relevant to the aforesaid assessment years he received Rs. 23,900 and Rs. 27,667, respectively, as his salary from the company. The company issued certificates showing that his salary was tax-free.

(3.) The assessee produced the certificates before the ITO in the assessment proceedings. The ITO added the amounts payable as tax on the aforesaid amounts and after allowing certain deductions determined his salary at Rs. 46,857 for the assessment year 1963-64 and Rs. 41,292 for the assessment year 1964-65.