TMI Blog1998 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 received by the assessee in September, 1975, in pursuance of the Madras Government's order is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to the wife by the Government of Tamil Nadu during his service in the Defence Ministry and was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance 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 hors his employment as a Government servant. The payment is in no way different from other allowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gally sustainable. The payments arose directly to the assessee by virtue of the employment of the assessee as a Government servant. We are, therefore of the view that it was rightly treated by the Income-tax Officer as salary and assessed under the head "Salary". Hence, we are unable to accept the view of the Appellate Tribunal that the amount received is exempt under the provisions of the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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