Commissioner Of Income Tax vs J.C. Malhotra
1997 Latest Caselaw 652 Del

JUDGMENT

R.C. Lahoti, J.

1. This is a reference under s. 256(1) of the IT Act, 1961, at the instance of the Revenue, seeking the opinion of the High Court on the following question :

"Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the cash award of Rs. 920 is exempt from taxation under s. 10(17B) ?"

2. The reward to the assessee, who was an ITO at the relevant time, had been given by the Central Government directly in connection with the Voluntary Disclosure Scheme. A separate approval of the Central Government for the purpose of exemption under s. 10(17B) of the Act was not given. That being the position, cl. (17B) of s. 10 of the Act was not attracted and the reward was not liable to be excluded from the computation of the income. So is the view taken in CIT vs. S. N. Singh, ITO (1991) 192 ITR 306 (Pat) : TC 32R.650.

3. For the foregoing reasons, the question is answered in the negative, i.e., in favour of the Revenue and against the assessee.

4. No order as to costs.