COMMISSIONER OF INCOME TAX Vs. RAMAIAH K

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Banglore Bench, Banglore referred the following common question for the opinion of this court :

(2.) IN I.T.R.C. No. 93 of 1977, the assessment year is 1972-73. The assessee was an erstwhile employee of the United Nations Organisation (hereinafter referred to as "the U.N.O."). During the previous year relevant to the assessment year, he received a sum of Rs. 12,780 as pension from the U.N.O. Before the ITO, the assessee claimed that the aforesaid amount receivedfrom the U.N.O. was exempt from taxation in view of the United Nations (Privileges & Immunities) Act, 1947 (hereinafter referred to as "the 1947 Act"). The ITO did not agree with the claim made by the assessee. He was of the view that the claim for exemption from taxation was not available in respect of pension. Aggrieved by the said order, the assessee preferred an appect before the AAC. The appellate authority accepted the contention urged for the assessee. The ITO questioned the correctness of the appellate order before the Appellate Tribunal. The Tribunal affirmed the order of the appellate authority. Thereafter, at the instance of the Commissioner, the question mentioned earlier has been referred for the opinion of this court.

(3.) AS can be seen from the preamble, the Act, was enacted for giving effect to the Conventions regarding the privileges and immunities of the United Nations an to enable the representatives and officials of the U.N.O. to enjoy those privileges and immunities. section 2 of the 1947 Act makes the provisions incorporated in the Schedule to the Act as law in India. Section 18, clause (b) of art. V of the schedule, is the provisions which is relevant to the facts of this case :