COMMISSIONER OF INCOME TAX Vs. K L KNIGHT

JUDGEMENT

(1.) In this reference under Section 256(1) of the I.T. Act, 1961, the respondent is not appearing. We requested Mr. R. N. Bajoria to appear as amicus curiae. We are grateful to him and to his learned junior, Mr. Samir Chakraborty, for the assistance they have given to us.

(2.) The assessment year is 1967-68,, corresponding to the accounting year ending on March 31, 1967. According to the statement of the case, the assessee was in the service of M/s. A. W. Heilgers & Co. (P.) Ltd. The ITO found that the assessee joined the above company in Calcultta on February 5, 1957. His services were thereafter lent to M/s. Heilgers (Burma) Ltd., in Burma on and from the 1st September, 1957. He rejoined the Calcutta company on the 22nd February, 1965. He served the Calcutta company for some time and then he resigned and left Calcutta.

(3.) From the salary certificate, the ITO found that the assessee's salary was paid up to April, 1968. The service agreement entered into on the 20th December, 1956, stipulates that the assessee was to serve the employers for three years and nine months from the date of his arrival. The issue before the ITO related to the rebate on the provident fund contribution and exclusion of the accumulated balance lying in the assessee's provident fund account with the employers from his total income. In this connection, it is relevant to refer to Rule 8 of Part A of Schedule IV to the I.T. Act, 1961. This rule provides as follows :