Foreign-earned pension received in India is not taxable merely because it is remitted into India.

Pension earned in Malaysia and merely received in India was held not includible in total income under the Income-tax Act, 1961, because the income was earned outside India. The Court applied its earlier ruling that foreign-earned pension does not become taxable in India solely by reason of remittance or receipt in India. On that basis, the pension amount was excluded from the assessee's total income and the issue was answered against the Revenue.

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Issues: Whether pension earned in Malaysia and received in India was includible in the assessee's total income under the Income-tax Act, 1961.

Analysis: The pension was earned outside India and merely received in India. The Court followed its earlier decision on the same point, which held that pension earned abroad and remitted to India by a resident did not constitute income earned in India for purposes of inclusion in total income.

Conclusion: The pension amount was not includible in the assessee's total income, and the question was answered in the affirmative and against the Revenue.

Ratio Decidendi: Income earned outside India and only remitted into India is not taxable in India merely because it is received in India.

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