House rent allowance for a retired Judge as Advisory Board Chairman was exempt because the office was treated on par with a sitting High Court Judge.

House rent allowance received by a retired Judge serving as Chairman of an Advisory Board under the National Security Act was treated as exempt, because the office was required to be held by a person who is or has been a High Court Judge and the appointment notifications placed the Chairman on par with a sitting Judge of the Punjab and Haryana High Court. The definition of "Judge" in the High Court Judges (Conditions of Service) Act, 1954 was read broadly to include a High Court Judge without distinguishing between sitting and retired Judges. On that footing, the allowance was linked to the office and its attached benefits, so the exemption applied and the amount was not taxable.

---

---

Issues: Whether the house rent allowance of Rs. 36,000 received by the assessee as Chairman of the Advisory Board constituted under the National Security Act, 1980 was taxable in his hands.

Analysis: The appointment notifications showed that the assessee, though a retired Judge, was entitled as Chairman of the Advisory Board to the same salary and allowances as a sitting Judge of the Punjab and Haryana High Court, with subsequent modifications keeping the office at par with that of a sitting Judge. Article 22 of the Constitution of India and Section 9-A of the National Security Act, 1980 required the Advisory Board to consist of persons who are or have been Judges of a High Court, and the Chairman to be one who is or has been a Judge. The definition of "Judge" in Section 2(1)(g) of the High Court Judges (Conditions of Service) Act, 1954 was broad enough to include a Judge of a High Court without drawing a distinction between sitting and retired Judges. In this setting, the allowance claimed was linked to the office held and the benefits attached to it, and the assessee was to be treated on par with a sitting High Court Judge for the purpose of the exemption.

Conclusion: The house rent allowance was not taxable and the assessee was entitled to the exemption claimed.

---