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TMI Blog1991 (4) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Balakrishna Chettur, who was employed in National Health Service, U.K. He died on 24-2-1976. On his death, the assessee, Smt. Lalitha Chettur, his wife, Krishna Chettur, his son and Padmini Chettur, daughter of the deceased, used to get the family pension. The family pension is received by Paymaster General, UK on behalf of the assessee and later it was remitted to her in India. The amount thus remitted to India in the accounting year relevant to the assessment year 1982-83 was Rs. 70,920. At page 10 of the paper book filed on behalf of the assessee Certificate of Pension from the Paymaster General's Office, Sutherland House, Russell Way, Crawley, West Sussex, was provided. It discloses that the gross taxable pension was pound 5117.67, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73-A/2/69-IT (A-II)] dated 20-2-1979, which was extracted in the Commissioner(Appeals)'s order, according to which, it is contended on behalf of the assessee that the pension received by her in India was not at all taxable in her hands for the assessment year 1982-83. The learned Commissioner(Appeals) accepted the contentions thus advanced on behalf of the assessee and held that the income of Rs. 70,920 had accrued to the assessee abroad and the same cannot be brought to tax in India considering the provisions of sections 5 and 15 of the Income-tax Act. Therefore he deleted the addition of Rs. 70,920 representing the amount of pension received, under his impugned order. 4. Now it is contended by the learned departmental representative th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived by the assessee was included as part of her income. Further in the appeal preferred by Miss Padmini Chettur before the Appellate Assistant Commissioner, 'A' Range, Madras for the assessment year 1982-83, the Appellate Assistant Commissioner remanded the matter to the Income-tax Officer for fresh disposal on this very point by his order dated 30-10-1985. A copy of the Appellate Assistant Commissioner's order is furnished at pages 13 to 16 of the paper book filed on behalf of the asssessee. In pursuance of the Appellate Assistant Commissioner's order of remand, the Income-tax Officer had again taken up the issue afresh, and passed a fresh assessment order dated 7-2-1986, a copy of which is furnished at pages 17 and 18 of the paper boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st instance and thereafter remitted or brought to India. In the case of Ms. Padmini Chettur, one of the legal heirs of the deceased, the Income-tax Officer while making the assessment for 1982-83 already agreed that the Paymaster General was acting as agent of the assessee and in his capacity as agent, first received the pension of the recipient from the Department of National Health Service and the same pension received by him was remitted to the assessee in India through post (vide page 17 of the paper book filed by the assessee, representing assessment order dated 7-2-1986, for the assessment year 1982-83, in the case of Padmini Chettur). Thus it can be seen that the amount of family pension was not directly received by the assessee in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e education continues. Therefore it is clear that the family pension and allowance due to the assessee were received abroad for the services rendered by late Balakrishna Chettur in Department of Health and Social Security in U.K. Therefore as per the CBDT circular quoted above this amount received in India cannot be taxed even on accrual basis. Further there was a Convention between the Governments of India and U.K. of Great Briton and Northern Ireland for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital gains published in Notification No. GSR 612(E), dated 23-11-1981, which is hereinafter called (DT Agreement for short). In Article 3 of the Agreement the terms 'a Contracting Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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