TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 1292
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.... dated 12.01.2006 was issued sanctioning a sum of Rs. 54,29,88,200/- towards the cost of 773 plots to be allotted to STF personnel including the petitioner against loans sanctioned to the Tamil Nadu Housing Board for implementation of various housing schemes. 2. Specifically G.O.Ms.368, Housing and Urban Development dated 29.10.2004 had been issued allotting a HIG Plot bearing No.1A-642 at Thiruvanmiyur Scheme to the petitioner. Accepting the representation of the petitioner dated 21.07.2008, G.O.Ms.No.763 Housing and Urban Development Department dated 21.07.2008 had been issued allotting Plot No.1 adjacent to Andaman Guest House at Anna Nagar West Extension in lieu of the plot issued earlier. 3. A registered deed of sale had been executed on 27.11.2009 whereby the Tamil Nadu Housing Board conveyed to the petitioners' favour land measuring 2 grounds and 8 sq.ft. of land in consideration of Rs. 1,08.43,000/- paid by the Government of Tamil Nadu on his behalf to the Tamil Nadu Housing board. 4. A return of income had come to be filed by the petitioner in terms of the Income Tax Act, 1961, wherein the petitioner had initially returned a total income of Rs. 18,38,791/- for Assessmen....
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....nadu which was the reward money for nabbing the forest brigand Veerapan. As the said sale agreement is between the assessee and the Tamilnadu Housing Board, it was an absolute purchase by the assessee and the land was not a gift from the Government of Tamilnadu. Only the cash money which was paid for the purchase of the land was only the reward and not the land. Hence the assessee has correctly computed the capital gain by taking the cost of purchase of Rs. 1,08,43,000/- and the stamp duty of Rs. 9,08,000/- as cost of acquisition for the computation of Long Term Capital Gain. The above facts have been fully disclosed during the course of the assessment and according the order under Section 143(3) was passed. We request you to kindly do the needful and oblige.' 8. Though the provisions of Section 10(17A) do not appear to have been specifically adverted to in the proceedings for assessment, letter filed by the petitioner before the Income Tax Officer, dated 26.05.2016, does refer to and rely upon this provision. In any event, and despite the objections raised by the petitioner, the proposal was confirmed by the respondent and at paragraph 8 of the impugned order, the Assessing....
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....tral Government shall have effect for such assessment year or years (including an assessment year or years commencing before the date on which such approval is granted) as may be specified in the order granting the approval; (17B) any payment made, whether in cash or in kind, as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in the public interest; (18) any payment made, whether in cash or in kind, by the Central Government or any State Government in pursuance of gallantry awards instituted or approved by the Central Government. 13. Erstwhile Clause (17A) contained a proviso that stated that the 'effective date' from which the approval was granted was to be specified in the order of the Central Government granting such approval. The proviso has been omitted in the substituted provision, effective 01.04.1989 onwards. Thus, it appears to me that while enlarging the clauses generally, by obviating specific reference to the purposes for which the awards could be given, legislature has also done away with the specification of a written approval from the Central Government, with effect from 01.....
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....n opportunity to persons who were afraid to come forward to bring it out on account of high taxation attended with severe consequences. This scheme was extremely successful, with the result that large unforeseen revenue flooded into the exchequer. At the same time, it cannot be forgotten that the income-tax wing of the Ministry had to work very hard with the already existing heavy load carried on. In some quarters of the Department, the staff had to work round the clock particularly at the closure of the period declared in the Ordinance. Appreciating this hard work and the extra output the Income-tax Department had shouldered, the Ministry came forward that the special output turned out by the staff would not go unnoticed. Therefore, the Government volunteered to pay the hard work turned out by the staff by means of a token cash benefit equal to one month's basic pay. Presumably on account of the emergency no overtime allowance could be sanctioned. It might perhaps involve a larger expenditure. To quote the Ministry of Finance letter F. No. 1-11015/1/76 Ad. IX, dated January 16, 1976, the first paragraph itself explains the circumstances under which it is granted, 'I am dir....
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....ry for the purpose of exemption under Section 10(17B). 18. The Delhi High Court, in a very short judgment, drawing support from the decision of the Patna High Court (supra) also negates the claim on a strict interpretation of Section 10(17B) on the ground that approval had not been accorded by the Central Government. The order reads as follows: 1. This is a reference under s . 256(1) of the IT Act, 1961, at the instance of the Revenue, seeking the opinion of the High Court on the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the cash award of Rs. 920 is exempt from taxation under s . 10(17B) ?" 2. The reward to the assessee, who was an ITO at the relevant time, had been given by the Central Government directly in connection with the Voluntary Disclosure Scheme. A separate approval of the Central Government for the purpose of exemption under s . 10(17B) of the Act was not given. That being the position, cl. (17B) of s . 10 of the Act was not attracted and the reward was not liable to be excluded from the computation of the income. So is the view taken in CIT vs. S. N. Singh, ITO (1991) 192 ITR ....
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....pt for law; would it not invite citizens to become a law onto themselves. It may lead to anarchy. The Governments have to consider and balance the choice between maintenance of law and order and anarchy. It does not appear that anyone considered this aspect. It yielded to the pressure tactics of those who according to the Government are out to terrorise the Police force and to overawe the elected Governments. It does not appear that anyone considered that with their action people may lose faith in the democratic process, when they see public authority flouted and the helplessness of the Government. The aspect of paralysing and discrediting the democratic authority had to be taken into consideration. It is the executive function to decide in public interest to withdraw from prosecution as claimed. But it is also for the Government to maintain its existence. The self-preservation is the most pervasive aspect of sovereignty. To preserve its independence and territories is the highest duty of every nation and to attain these ends nearly all other considerations are to be subordinated. Of course, it is for the State to consider these aspects and take a conscious decision. In the prese....