COMMISSIONER OF INCOME TAX Vs. MAJJIDUNNISA BEGUM

JUDGEMENT

(1.) On the direction issued by this Court on the application of the Revenue filed under s. 256(2) of the IT Act, 1961, to state the case and refer the question of law, the Tribunal has stated the case and referred the following question of law :

(2.) The said question arose out of the orders of assessment for the asst. yrs. 1972-73 to 1975-76. The assessee is a widow of one late Shri Durvesh Alam Quadri, who was in the service of the United Nations Organisation (UNO) from 1961 and died in harness in 1965. His widow, the assessee, was granted pension from the United Nations Joint Staff Pension Funds. For the said years, she received Rs. 19,890 as family pension. Before the ITO she claimed exemption under s. 18(b) of Art. V of the United Nations (Privileges and Immunities) Act, 1947. The ITO held that she was not entitled to the exemption. That order was affirmed by the AAC on appeal by the assessee. However, on further appeal to the Tribunal, it was held that the pension received by the employee of the UNO was exempt from tax, so the amount of pension received by the assessee could also be exempt from taxation and accordingly, the three appeals for the said assessment years were allowed on 7/05/1981. It is from those orders that the said question has arisen.

(3.) Mr. S. R. Ashok, learned standing counsel for the Revenue, contends that the benefit of s. 18(b) cannot be availed by the widow of an employee of the UNO and that where the Act intended to extend the benefits to the widows or other family members of the employees of the UNO, it was specifically stated in the provision. In the case of pension no such exemption is granted, therefore, the pension received by the widow could not be exempted from the income-tax payment. Mr. Y. Ratnakar, learned counsel appearing for the respondent, submits that the amount of pension which is being paid to the widow is out of the funds of the UNO; had the employee been alive he would have received the pension and as his widow is receiving the pension, the amount could not be treated differently, as such the Tribunal is right in holding that the pension received by the widow was exempted.