1984 (10) TMI 26 - HC - Income Tax

Sitting judge entitled to exemption for residing in non-owned building for official duties

The High Court of Delhi dismissed the application under section 256(2) of the Income-tax Act, 1961, regarding exemption claimed under section 23(3). The ... Exemption under section 23(3) - residence in a building not belonging to him due to employment - distinction between Delhi and New Delhi as an 'other place' - reference under section 256(1) - question of lawExemption under section 23(3) - residence in a building not belonging to him due to employment - distinction between Delhi and New Delhi as an 'other place' - The assessee was entitled to the exemption claimed under section 23(3) and a reference under section 256(1) was not required. - HELD THAT: - The Tribunal had found that the assessee, a sitting judge, was required by reason of his office to reside at an official residence in New Delhi which did not belong to him, while his own residential house in Delhi was kept vacant. Section 23(3) grants exemption where a person, by reason of employment, has to reside at another place in a building not belonging to him. The Court held that on these facts the statutory condition was satisfied. The Court further observed that the phrase 'other place' in the section is not confined to another town and its application depends on the facts of each case. Given that the assessee was compelled by official duty to reside at the official accommodation in New Delhi and kept his Delhi house vacant for that reason, the exemption plainly applied. For these reasons the Court declined to direct a reference under section 256(1).Reference under section 256(1) refused; exemption under section 23(3) held to be available to the assessee.Final Conclusion: The application for a reference was refused; on the facts the assessee is entitled to the exemption under section 23(3) as he was residing at an official residence not belonging to him and had kept his own house vacant for that reason. The High Court of Delhi dismissed an application under section 256(2) of the Income-tax Act, 1961, regarding the exemption claimed under section 23(3). The court held that the assessee, a sitting judge, was entitled to the exemption as he resided in a building not belonging to him due to his official duties, even though the properties were in Delhi and New Delhi. The court declined to make a reference as the answer to the legal question was self-evident.