1998 (6) TMI 18

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....AMANIAN J.---This is a reference at the instance of the Revenue and the Appellate Tribunal has stated a case and referred the following question of law for our consideration under section 256(1) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act") : "Whether, on the facts and circumstances of the case, the Tribunal was justified in law in holding that the sum of Rs. 30,887 r....

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....l Service, whether married or single, whether regular or temporary and who was seconded to the armed forces. The question that arises is whether the sum of Rs. 250 per month received as family allowance is liable to be taxed under the provisions of the Act. In the assessment proceedings, the assessee claimed that the amount received was exempt on the ground that the family allowance was given t....

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.... answer. We are of the opinion that the family allowance was paid to the assessee and the allowance arose by virtue of the employment of the assessee in the Government of Tamil Nadu. No doubt, the purpose of the payment might have been meant to compensate the cost of maintenance of the family, but the assessee received the money by virtue of his employment and he was not given the payment de ho....