High Court Of Madras
CIT vs. Smt. Janaki Loganathan
Sections 15, United Nations (Privileges and Immunities) Act, 1947
Asst. Year 1973-74, 1974-75, 1975-76, 1976-77, 1977-78
V.S. Sirpurkar & N.V. Balasubramanian, JJ.
Tax Case Nos. 488 to 492 of 1991
10th July, 2002
Counsel Appeared
T.C.A. Ramanujam, for the Applicant : None, for the Respondent
JUDGMENT
N.V. BALASUBRAMANIAN, J. :
The common question of law referred at the instance of the Revenue in relation to the assessment years of the assessee 1973-74 to 1977-78 is as under :
“Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the pension paid to the assessee, a widow of the United Nations ex-official from the UN Joint Staff Pension Fund is exempt from income-tax ?”
The respondent has not yet been served. However, we proceed with the Tax Case as the question is liable to be answered in favour of the assessee.
The short question that arises for our consideration is whether the pension amount received by a widow of the United Nations ex-official from the UN Joint Staff Pension Fund is exempt from the levy of tax under the IT Act, 1961. We find that the Karnataka High Court in CIT vs. K. Ramaiah (1980) 126 ITR 638 (Kar) : TC 58R.390 has held that the pension amount received by the U.N. pensioners is exempt from tax. We are of the view that the ratio of that judgment would apply to the facts of the case as the pension received by the widow of the deceased U.N. official would also represent salary and hence it is exempt from tax under the United Nations (Privileges and Immunities) Act, 1947. It is relevant to mention here that the CBDT has accepted the decision of Karnataka High Court and directed that the pending appeals and reference application on this point should be withdrawn. It is clear that under the United Nations (Privileges and Immunities) Act 1947, the salaries and emoluments paid to officials of UNO are exempt from tax. The pension paid is exempt because the pension is nothing but the salary. Equally, the pension paid to the widow of the deceased U.N. official would not assume of a different character and is covered under the provisions of United Nations (Privileges and Immunities) Act, 1947. We find that the pension was paid to her as a recompense of the contribution made by her deceased husband to the fund and was received by her in her capacity of what would have been received by her husband, had he been alive. Moreover, we find that the Calcutta High Court in CIT vs. Dipali Goswami (1986) 51 CTR (Cal) 139 : (1986)156 ITR 36 (Cal): TC 58R.393 and Allahabad High Court in Usha Shah vs. CIT (1988) 74 CTR (All) 33 : (1988) 175 ITR 572 (All) : TC 58R.400 have held that the pension received by the widow of an employee of United Nations is exempt from tax. We are in agreement with the views expressed by aforesaid decisions of the Calcutta High Court and Allahabad High Court. It is not brought to our notice that any contrary view has been taken by any other Court. We, therefore, held that the pension amount received by the assessee is exempt from tax.
Hence, the common question of law referred to us for the various assessment years is answered against the Revenue and in favour of the assessee. No costs.
[Citation : 257 ITR 620]
