COMMISSIONER OF TAX­ES Vs. SHAHABUDDIN AHMED

JUDGEMENT

(1.) These two appeals by special leave are directed against the judgment and order of High Court Division in Income "Tax Reference Application Nos. 8 and 9 of 1988.

(2.) Leave was granted to consider the question whether the High Court Division has erred in law in holding that once an income (such as the salary of the Judge in the instant case) was taken out from taxability it must be held to carry with it an exclusion from total income also inasmuch as exemption from income tax under section 60 is different from the computation of total income as envisaged in section 2(15) and section 4(1) of the Income Tax Act. Further, whether section 10 of the President's Order No. 21 of 1973 controls the Circular No. S.R.O. 440/L/76 dated 18.12.76 issued under section 60 of the Income Tax Act.

(3.) The Assessee contended that the salary income which is exempted from taxation by the President's Order No. 21 of 1973 could not be included for the purpose of taxation while computing total income.