Palace income exemption upheld where prior precedent treated the former ruler's entire palace income as exempt from income-tax.

The Madhya Pradesh HC followed its earlier ruling on similar facts and held that the entire income from the former Ruler of Bastar's palace remained exempt from income-tax. The Court found no reason to depart from the prior decision, under which the Tribunal was justified in treating the palace income as fully exempt. The reference was answered in favour of exemption and against the Revenue.

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Issues: Whether the entire income from the palace of the former Ruler of Bastar was exempt from income-tax.

Analysis: The question referred was covered by an earlier decision of the same Court holding that, on similar facts, the Tribunal was justified in law in treating the entire income from the assessee's palace as exempt from income-tax. No reason was found to depart from that view, and the earlier ruling was followed.

Conclusion: The Tribunal was justified in holding that the entire income from the palace of the assessee was exempt from income-tax, and the question was answered in the affirmative and against the Revenue.

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