Reward to govt. servants for success of VDIS-Applicability of Sec. 10(17B). - Income Tax - 1320/CBDT

INSTRUCTION NO. 1320/CBDT Dated: March 12, 1980 Attention is invited to Board's Instruction No.1189 dated 26th June, 1978 on the above subject. It was stated that the reward paid by the Central Government to officers and staff of various Government Departments following the success of voluntary Disclosure Scheme, was not exempt either under section 10(17B) or under section 10(3) of the Income-tax Act, 1961. The Madras High Court have held in the case of CIT Vs. J.G. Gopinath, that the terms of section 10(17B) of the I.T. Act, 1961 were completely satisfied. The Department has been advised to accept the Madras High Court decision. In view of the acceptance of the High Court decision, Instruction No. 1189 dated 26.6.78 stands cancelled. All appeals and reference applications on this point may be conceded/withdrawn.