9911796707
|
Home
Issues:
1. Whether the income received by the assessee from the USA is exempt under section 10(16). 2. Whether the remuneration received for giving lectures and royalty amount are taxable. 3. Whether relief under section 80RR should be allowed. Analysis: Issue 1: The assessee received stipends and other amounts from the National Institute of Health (NIH) in the USA. The appellate authority held that the income received by the assessee was in the nature of scholarship and exempt under section 10(16) based on the decision of the Karnataka High Court in A. Ratnakar v. Addl. CIT [1981] 128 ITR 527. The certificates from NIH clarified that the payments were stipends for education and training, not compensation for employment services. Thus, the amount received by the assessee was considered exempt under section 10(16). Issue 2: The revenue contended that the scholarship amount should have been utilized for its intended purpose to qualify for exemption under section 10(16). Additionally, it was argued that the remuneration for lectures and royalty received were taxable and not exempt under section 10(16). However, the counsel for the assessee supported the appellate authority's decision, emphasizing that the scholarship amount was received as per NIH certificates and was exempt under section 10(16). The appellate tribunal found that the remuneration for lectures and royalty were not exempt under section 10(16) and were taxable. Issue 3: The matter of relief under section 80RR claimed by the assessee was raised. The tribunal decided to restore the issue to the Income Tax Officer (ITO) for further examination of the claim under section 80RR. The appeals were treated as partly allowed for statistical purposes, indicating a partial success for the assessee. In conclusion, the appellate tribunal upheld the exemption of the scholarship amount under section 10(16) but deemed the remuneration for lectures and royalty as taxable. The issue of relief under section 80RR was remanded to the ITO for further review.
|
