https://www.taxtmi.com/caselaws?id=49447 An income-tax exemption granted by a ruler of an erstwhile State was not enforceable against the Union of India after merger because rights arising from pre-cession sovereign arrangements do not automatically survive in municipal courts. Such stipulations remain part of the act of State unless the successor sovereign recognises the right. On the facts, there was no sufficient material to show recognition by the Dominion or Union of India, and mere non-assessment for a short period did not amount to acceptance of the exemption. The claimed exemption therefore failed. en-us Fri, 02 Sep 1960 00:00:00 +0530 Tue, 02 Sep 2014 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49447 An income-tax exemption granted by a ruler of an erstwhile State was not enforceable against the Union of India after merger because rights arising from pre-cession sovereign arrangements do not automatically survive in municipal courts. Such stipulations remain part of the act of State unless the successor sovereign recognises the right. On the facts, there was no sufficient material to show recognition by the Dominion or Union of India, and mere non-assessment for a short period did not amount to acceptance of the exemption. The claimed exemption therefore failed. Case-Laws Income Tax Fri, 02 Sep 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49447