https://www.taxtmi.com/caselaws?id=65992 The Tribunal clarified that compensatory allowances paid by a foreign government to Government of India servants deputed abroad are exempt under section 10(7) of the Income-tax Act, 1961 if approved by the Government of India. The Tribunal emphasized that the term 'Government' in section 10(7) refers to the Government of India and that the payment and allowance do not need to be from the same authority. As long as the Government of India approves the payment, the exemption applies, ensuring consistent application of tax laws. The Tribunal upheld the exemption of compensatory allowance in this case, dismissing the revenue's appeal. en-us Tue, 31 Jul 1984 00:00:00 +0530 Sat, 19 Feb 2011 17:06:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65992 The Tribunal clarified that compensatory allowances paid by a foreign government to Government of India servants deputed abroad are exempt under section 10(7) of the Income-tax Act, 1961 if approved by the Government of India. The Tribunal emphasized that the term 'Government' in section 10(7) refers to the Government of India and that the payment and allowance do not need to be from the same authority. As long as the Government of India approves the payment, the exemption applies, ensuring consistent application of tax laws. The Tribunal upheld the exemption of compensatory allowance in this case, dismissing the revenue's appeal. Case-Laws Income Tax Tue, 31 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65992