1. ' SALEEM AKHTAR, J,--This is an application under section 66(2) of the Income Tax Act. The respondent carries on business of general insurance. For the assessment year 1975-76 ending on 31st December, 1974 a return of income was filed by the respondent declaring income of Rs, 65,740.
2. It claimed management expenses beyond the amount permitted in terms of Rule 40 and section 40 (c) of the Insurance Act. This was not allowed by the Income Tax Officer and Rs, 25,676 was added back to the income. The respondent filed an appeal before the Appellate Assistant Commissioner who allowed it. The applicant then filed appeal before the Tribunal which was dismissed. He moved an application under section 66(1) of the Act to draw a statement of the case and refer the question of law arising from the order of the Tribunal to the High Court. The Tribunal, rejected the reference application and refused to state the case. The applicant then filed the present application stating that the following question of law raises from the order of the Tribunal and the same may be answered: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the sum of Rs, 25,676 claimed as management expenses being in excess of and in contravention of the maximum prescribed in this behalf under Rule 40 of the Insurance Rules were admissible?"
3. ' We have heard Mr. Shaikh Haider and Mr. Sirajul Haque, Advocates. Both the learned counsel have frankly stated that the question has conclusively been decided in the case of Commissioner of Income-tax v. Alpha Insurance Company Limited (PLD 1981 SC 293). In view of the judgment of the