TMI Blog1979 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(17B) of the Income-tax Act, 1961. The Income-tax Officer disallowed the claim stating that there was no notification issued under that provision exempting this reward from assessment. The Appellate Assistant Commissioner accepted the assessee's claim and granted the exemption. The Income-tax Officer took the matter on appeal to the Tribunal and the Tribunal agreed with the Appellate Assistant Commissioner in regard to the grant of exemption. It is this order of the Tribunal which was challenged by filing an application for reference which was dismissed, and the matter has now been brought before this court under section 256(2) of the Income-tax Act. The following are the questions that are sought to be raised as question of law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch purposes as may be approved by the Central Government in this behalf in the public interest." The relevant circumstances under which this reward came to be given have been extracted by the Tribunal in I. T. A. No. 1422 (Madras) of 1976-77, which is also the subject of another petition numbered as T. C. P. No. 366 of 1978, that extract is as under : "The Central Government (Ministry of Finance) sponsored a voluntary disclosure scheme under the provisions of the Voluntary Disclosure of Income and Wealth Ordinance, 1975. By this Ordinance, the Government offered an unique opportunity to the public at large that any person who wanted to disclose his black money or suppressed wealth, etc., could come forward with a clean breast under cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he circumstances under which it is granted. 'I am directed to state that in appreciation of the meritorious work done by the income-tax personnel for the success of the voluntary disclosure schemes, the Government have decided to grant them reward of an amount equal to one month's basic pay'." The above extract makes it clear that such reward was granted in public interest. It would be surprising if the Government were to grant rewards for reasons other than public interest. It is, therefore, evident that the terms of section 10(17B) are completely satisfied in the present case as the circular gives the circumstances under which the rewards are granted. The voluntary disclosure scheme could only have been conceived in public interest as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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