Law:

Section:

Section 17 of the Income-tax Act, 1961, read with section 18(b) of article V of the United Nations (Privileges and Immunities) Act, 1947 - 'Salary' - Chargeable as - Assessment years 1973-74 to 1977-78 - Whether pension paid to assessee, a widow of United Nations ex-official, from UN Joint Staff Pension Fund is exempt from income-tax as pension so received also represents salary and, hence, it was exempt from tax under the United Nations (Privileges and Immunities) Act, 1947 - Held, yes FACTS In a matter relating to claim for exemption from income-tax, the Tribunal held that pension paid to the assessee, a widow of the United Nations ex-official, from the United Nation ('UN') Joint Staff Pension Fund, was exempt from income-tax. On reference : HELD The ratio of the of the Karnataka High Court in CIT v. K. Ramaiah [1980] 126 ITR 638 would apply to the facts of the instant case as the pension received by the widow of the deceased, U.N. Official, would also represent salary and, hence, it was exempt from tax under the United Nations (Privileges and Immunities) Act, 1947. The CBDT had accepted the decision of the Karnataka High Court and directed that the pending appeals and reference application on this point should be withdrawn. Under the United Nations (Privileges and Immunities) Act, 1947, the salaries and emoluments paid to officials of UNO are exempt from tax. The pension paid is exempt because the pension is nothing but the salary. Equally, the pension paid to the widow of the deceased would not assume a different character and is covered under the provisions of the United Nations (Privileges and Immunities) Act, 1947. The pension is paid to her as a recompense of the contribution made by her deceased husband to the fund and is received by her in her capacity of what would have been received by her husband, had he been alive. No contrary view had been taken by any other court. Therefore, it was to be held that the pension amount received by the assessee was exempt from tax. CASES REFERRED TO CIT v. K. Ramaiah [1980] 126 ITR 638 (Kar.), CIT v. Smt. Dipali Goswami [1985] 156 ITR 36/[1986] 25 Taxman 39 (Cal.) andSmt. Usha Shah v. CIT [1989] 175 ITR 572/[1988]…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492