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2020 (2) TMI 1292 - HC - Income TaxExemption to "Reward" as as approved by the government in Public Interest - whether the reference to ‘approval’ in Section 10(17A) will include an implied approval or whether such approval has to be express? - HELD THAT:- The object of Section 10(17A) is to reward an individual who has been recognized by the Centre or the State for rendition of services in public interest. While clause (i) is concerned with an award whether in cash or in kind, instituted in public interest by the Central or any State Government or instituted by any other body and approved by the Central Government in this behalf, clause (ii) refers to a reward by the Central or a State Government for such purposes as may be approved by the Central Government in this behalf in public interest. No specification or prescription has been set out in terms of how the approval is to be styled or even as to whether a formal written approval is required. Nowhere in the Rules/Forms is there reference to a format of approval to be issued in this regard. That apart, one should, in my view, interpret the provision and its application in a purposive manner bearing in mind the spirit and object for which it has been enacted. It is clear that the object of such a reward is by way of recognition by the State of an individual’s efforts in protecting public interest and serving society in a significant manner. Thus, in my considered view, the reference to ‘approval’ in Section 10(17A) does not only connote a paper conveying approval and bearing the stamp and seal of the Central Government but any material available in public domain indicating recognition for such services, rendered in public interest. The petitioner has been recognized by the Central Government on several occasions for meritorious and distinguished services and from the information available in public domain, it is seen that he was awarded the Jammu & Kashmir Medal, Counter Insurgency Medal, Police Medal for Meritorius Service (1993) and the President’s Police Medal for Distinguished Service (1999). Specifically for his role in nabbing Veerapan, he was awarded the President’s Police Medal for Gallantry on the eve of Independence Day, 2005. What more! If this does not constitute recognition by the Centre of service in public interest, for the same purposes for which the State Government has rewarded him, I fail to understand what is. The reward under Section 10(17A)(ii) is specific to certain 'purposes' as may be approved by the Central Government in public interest and the 'purpose' of the reward by the State Government has been echoed and reiterated by the Centre with the presentation of the Gallantry Award to the petitioner in 2005. This aspect of the matter is also validated by the Supreme Court in Abdul Karim ( 2000 (11) TMI 1257 - SUPREME COURT ) as can be seen from the judgment extracted earlier, where the Bench makes observations on the notoriety of Veerapan and the threat that he posed to the Country, as a whole. Seen in the context of the recognition by the Centre of the petitioners' gallantry as well as the observations of the Supreme Court in Abdul Karim ( 2000 (11) TMI 1257 - SUPREME COURT ) and ratio of the decision in J.G.Gopinath ( 1979 (6) TMI 1 - MADRAS HIGH COURT ), the approval of the Centre in this case, is rendered a fait accompli.
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