TaxTMI 
TaxTMI 
2009 (8) TMI 769
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....d are being disposed of by this common and consolidated order, for the sake of brevity and convenience. 2. Following common grounds are raised by the revenue in all these appeals :- "2.11 The CIT(A) erred in deleting the addition of reward amount received by the assessee as an informer from the Customs. 2.12 The CIT(A) failed to note that the prime condition for exemption of the reward received by the assessee, viz., approval by Central Government under provisions of section 10(1)(A)(ii) was not satisfied in this case. 2.13 The CIT(A) ought to have noted that as per Customs Manual furnished by the Customs authorities it has been stated that no income-tax is deductible at source for informers who are resident in India and it is not clear....
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....laimed the amount was received by him as Gallantry award, it is seen from the records that it is a reward given to him for the meritorious services rendered by him to the Department in certain cases listed by them. Thus, the Assessing Officer treated these receipts from the Government as income in the hands of the assessee in the absence of any notification issued by the Government under section 10(17A)(ii) of the Income-tax Act. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 4. After going through the assessment order, the CIT (Appeals) was of the view that it was highly improper and irregular to have sought to tax the subject receipts thus endangering the life and security of the recipient (appel....
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....d counsel for the assessee placed on record a copy of notification issued by Customs and Central Excise Commissionerate, Nagpur and drew our attention to the following specific sentence in the said Notification :- "This reward is exempted from income-tax." He also relied on the decision of the ITAT Bombay Bench in the case of M.K. Mohamed Ebrahim (supra) wherein similar issue was dealt with. Further, he also relied on the decision of Madras High Court in the case of CIT v. J.G. Gopinath [1998] 231 ITR 2293 (Mad.) wherein the Hon'ble High Court has held that the reward given to the income-tax personnel for successful completion of Voluntary Disclosure Scheme, 1975 was exempted under section 10(17B) of the Income-tax Act. 7. We have heard ....