USHA SHAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question has been referred to this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE facts of the present case are almost similar to the facts which were before the Calcutta High Court in the case of CIT v. Dipali Goswami [1985] 156 ITR 36. In that case, the Calcutta High Court considered the question whether the pension received by the widow of an employee of the United Nations who died in harness would be exempt from tax. THE Calcutta High Court held that keeping in view the provisions contained in Section 18(b) of the United Nations (Privileges and Immunities) Act, 1947, the amount received by an official of the United Nations from the pension fund by reason of his employment in the United Nations will be exempt from tax during his continuance in service as well as after his retirement. Under article 35 of the United Nations Joint Staff Pension Fund Regulations, when an official of the United Nations dies in harness, his widow is entitled to pension. Accordingly, it was further held that, on a parity of reasoning, when the pension which the widow receives is in effect what was receivable by the husband had he been alive, the pension receivable by a widow of an employee of the United Nations who died in harness would also be exempt from tax.

(3.) A certified copy of this order be handed over to learned counsel for the applicant on payment of usual charges within forty-eight hours.