Order u/s.10(17B) of the Income Tax Act. - Income Tax - 1189/CBDT

INSTRUCTION NO. 1189/CBDT Dated : June 26, 1978 Section(s) Referred: 10(17B) Statute: Income - Tax Act, 1961 In connection with paragraph 47 (Voluntary disclosure of the Income and Wealth Scheme, 1975) of the Report of the Comptroller and Auditor General for the year 1976-77-Union Government (Civil)-Revenue Receipts-Vol. II-Direct Taxes, the Public Accounts Committee has asked for the following information:- "Was some special reward given to officers and staff of the Income-tax Department in connection with this Scheme? What were the categories covered? What was the total amount spent? Was it included in the total income of the employees for income-tax purposes?" As you are aware, officers and staff of the Income-tax Department as also the specified officials of the Central Board of Direct Taxes and the Department of Revenue and Insurance were granted reward of an amount equal to one month basic pay in appreciation of the meritorious work done for the success of the Voluntary Disclosure Scheme, 1975. A similar reward was also given to the officers and staff of Customs, Central Excise and Narcotics Departments the various other formations under the Central Board of Excise and customs, the Department of Revenue and Banking and the Directorate of Revenue Intelligence and Directorate of Enforcement. As no order u/s.10(17B) of the I.T.Act was issued and the exemption u/s.10(3) was not available the payment was clearly liable to be taxed and wherever CITs had sought clarification in the matter they were advised accordingly. 3. Please ensure that the above reward payment is duly taxed and also taken into account for purposes of Compulsory Deposit Scheme in all liable cases. In case of an adverse appellate decision, appeal to the Tribunal/reference application, should be filed as necessary. If the payment has escaped assessment in any case reassessment proceedings should be initiated immediately.