Alimony paid to a divorced wife for pre-existing maintenance rights was held not taxable as income from other sources.

A lump sum payment by an ex-husband to a divorced wife, made in recognition of her pre-existing right to maintenance under Hindu law, was treated as alimony and not as income from other sources. The payment retained a non-taxable character because the record did not show any separate consideration or independent transaction supporting taxability under section 56(2)(vi) of the Income-tax Act, 1961. In the absence of evidence that the amount was paid for another purpose, it was held to be an exempt receipt.

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Issues: Whether the amount received by the assessee from her ex-husband as alimony was taxable as income from other sources under section 56(2)(vi) of the Income-tax Act, 1961, or was exempt as a non-taxable receipt.

Analysis: The assessee was the legally wedded wife of the payer and the marriage had been dissolved. Under Hindu law, a wife has a pre-existing right to maintenance, and such right does not cease merely because the marriage has been dissolved. A lump sum payment by a husband to a divorced wife in recognition of that right can therefore retain the character of alimony. The record did not show that the payment was made for any other consideration or under any other transaction. In the absence of such evidence, the payment was treated as having no taxable character under the head of income from other sources.

Conclusion: The amount received from the ex-husband was not taxable under section 56(2)(vi) and was liable to be treated as an exempt receipt.

Ratio Decidendi: A lump sum payment made by an ex-husband to his divorced wife in recognition of her pre-existing right to maintenance is not taxable as income from other sources in the absence of evidence that it was paid for any other consideration or transaction.

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