COMMISSIONER OF INCOME TAX Vs. BIRAD KANWARJI H H

JUDGEMENT

(1.) THESE are three applications under Section 256(2) of the I.T. Act, 1961, by the CIT, Jodhpur at Jaipur, for requiring the Income-tax Appellate Tribunal, Bombay Bench " A ", to refer certain question of law said to arise out of its consolidated order dated January 1, 1975, in Income-tax Appeals Nos. 522 of 1972-73, 949 and 950 of 1971-72 pertaining to the assessment years 1967-68, 1968-69 and 1969-70, to the High Court for its opinion.

(2.) THE facts giving rise to these reference applications, in brief, are as follows :

(3.) HAVING heard the learned counsel for the parties, we are satisfied that the order of the Appellate Tribunal, does, in our opinion, give rise to a question of law. Indeed, the Appellate Tribunal commences its order by observing that the appeals raise a very important question as to whether the monthly allowance paid to the assessee by the Maharana of Udaipur out of the privy purse received by him was exempt from payment of income-lax, when the privy purse received by the ruler of an Indian State is exempt under Section 10(19) of the I.T. Act, 1961. That was the main contention before the Appellate Tribunal. The Appellate Tribunal in its order upheld the contention of the assessee mainly on the ground that the hath kharch allowance was exempt under Section 10(19) of the Act. The Appellate Tribunal then went on to grant relief to the assessee even on the alternative ground under Section 10(2) of the Act.