TMI Blog1995 (7) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... abbing (Prohibition) Act, 1982. For the assessment year 1990-91, assessee filed a return admitting net income of Rs. 74,870 on 22-5-1990, and the assessment was completed under section 143(3) of the Income-tax Act, on 23-1-1991 without making any addition. (b) The Commissioner, while perusing the records of assessment, noticed that the assessee had claimed full exemption in respect of the house rent allowance of Rs. 29,643 received by him during the accounting year corresponding to this assessment year as chairman of A.P. Land Grabbing (Prohibition) Special Court. He felt that the assessee was not actually entitled to exemption of the house rent allowance, and to the extent of allowance of exemption in that regard, the assessment as compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2D of the High Court Judges (Conditions of Service) Act, 1954. He submitted that one need not be only a sitting Judge of the High Court to claim that exemption, and when a retired Judge of the High Court was appointed as the Chairman of the Land Grabbing (Prohibition) Special Court constituted under the A.P. Land Grabbing (Prohibition) Special Court constituted under the A.P. Land Grabbing (Prohibition) Act, 1982, he is in the same position as the serving Judge of the High Court and he can claim exemption under section 22D of the High Court Judges (Conditions of Service) Act, 1954. Placing reliance on the decision of the Tribunal (Chandigarh Bench) in the case of Justice H.R. Sodhi v. ITO [ ] 44 ITD 32 (sic), he submitted that the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and trial of cases in respect of the ownership and title to, or lawful possession of, the land grabbed, by notification, constitute a Special Court. (2) A Special Court shall consist of a Chairman and four other members, to be appointed by the Government. (3) The Chairman shall be a person who is or has been a Judge of a High Court and of the other four members, who shall be persons who are or have been District Judges (hereinafter referred to as Judicial Members) and the other two members shall be persons who hold or have held a post not below the rank of a District Collector (hereinafter referred to as revenue Members); Provided that the appointment of a person who was a Judge of a High Court as the Chairman of the Special Court sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh Land Grabbing (Prohibition) Act, 1982, ordered in G.O. first read above, is subject to the following terms and conditions : (a) He will be a full time officer. His appointment is for a period of two years from the date of his taking charge or until the Special Court is reconstituted or abolished, whichever is earlier. He assumed charge on 25-2-1988. (b) He will draw a salary of Rs. 8,000 (Rupees Eight thousand only) per month, which is equivalent to the salary of serving Judge of Andhra Pradesh High Court and other perquisites and allowances entitled to a serving Judge of the High Court, minus pension and pension equivalent of D.C.R.G." Clause (b) above in the G.O. of 28-5-1988 has been replaced by the following clause by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce paid to him under sub-section (2) of that section, shall not be included in the computation of his income chargeable under the head 'Salaries' under section 15 of the Income-tax Act, 1961. " 7. In the above factual background, the question before us is whether the assessee, who is a retired Judge of the A.P. High Court as Chairman of the Special Court, is entitled as in the case of a High Court Judge, to claim exemption in respect of house rent allowance received by him, since he is entitled to pay, allowances and perquisites as are entitled to a serving Judge of the High Court. 8. In the case of Justice H.R.Sodhi v.ITO [ ] 44 ITD 32, a retired Judge of the High Court was appointed as Chairman of Advisory Board constituted under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it would not be proper to deny him exemption to which a High Court Judge was entitled, that being the nontaxability of the house rent allowance or the value of rent-free official accommodation vis-a-vis section 22D of the High Court Judges (Conditions of Service) Act, 1954, as modified from time to time. Considering the definition of the term 'Judge' under High Court Judges (Conditions of Service) Act, 1954 also, the Tribunal held that the said definition drew no distinction between a sitting Judge and a retired Judge, and as such the said definition cannot be a bar to the entitlement of the assessee to the benefit of exemption in respect of house rent allowance. The Tribunal further illustrated that a High Court Judge appointed to a Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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