Law: Wealth Tax Act, 1957

Section: 5(1)(xviii)

Wealth tax-----Exemption----Award---Difference between award and reward---Reward received by a tax informer is not an award---Not entitled to exemption--­Indian Wealth Tax Act, 1957, S.5(1)(xviii). There, is a difference between reward and award. An award is normally given in recognition of a significant achievement normally over and above the call of duty and .is not a payment for service rendered. A reward obtained for information which is supplied cannot be regarded as an award. It is not entitled to exemption under section 5(1)(xviii) of the Wealth Tax Act, 1957. JUDGMENT R. JAYASIMHA BABU, J.---As to whether the amount received by an informer as reward from the Government for having given information about concealment by a manufacturer of goods regarding the proper amount on which excise duty was payable, should be treated as an "award" for gallantry or merit, is the question that arises for consideration in this petition. The petitioner received a sum of Rs.24,40,000 for having given such information. The petitioner contends that the amount is an "award" for meritorious service rendered by him 'and, therefore, is exempt from wealth tax under section 5(1)(xviii) of the Wealth Tax Act, 1957. There is a difference between reward and award. The reward was received by the petitioner for the information which he provided. An award, on the other hand, is normally given in recognition of a significant achievement normally over and above the call of duty and is not…

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