9911796707
TMI Blog2001 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... g served that company in then Malaya. He retired from service on June 1, 1961, and was entitled to receive pension from Shell Malaya Staff Pension Fund. In the assessment made for 1974-75, for which the previous year ended on March 31, 1974, the Income-tax Officer included in the assessee's total income two sums, namely, (i) Rs.6,502 representing pension, and (ii) Rs.1,32,765 representing commutation of retirement benefits received from Burma Shell Oil Storage and Distribution Company of India Ltd., both of which were claimed by the assessee as not being chargeable to tax. The appeal by the assessee before the Appellate Assistant Commissioner having failed, the assessee went up in further appeal before the Tribunal. The Tribunal rejected th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in the facts before us make any difference to the taxability of the amount received by the assessee in India. Admittedly, the assessee is resident in India and the monies were disbursed to him in India by the Burma Shell Oil Storage and Distribution Company of India Ltd. In this context, the decision of a Division Bench of this court in B.R. Sundaram v. CIT [1979] 117 ITR 960, is relevant. In that case, the assessee, who was a resident at Madras, was a pensioner of the Malaysian Government and the pension was paid by the Accountant General, Madras, in Indian currency in pursuance of an arrangement entered into between the Government of India and the Government of Malaysia as a result of which the Government of India was credited wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be described as pension but it is a capital receipt and it relied on the commentary on the Law of Income Tax by A.C. Sampath Iyengar, 1981 edition. The Tribunal has failed to take note of the fact that to effect a change in the law, in the repealed 1922 Act clause (v) of section 4(3) was omitted and two new provisions clause (6C) to section 2 and Explanation 2 to section 7(1) introduced to bring to tax commutation of pension as income. That position continued under the 1961 Act till clause (10A) was introduced and section 17(3)(ii) was suitably amended in 1965. Thus, though commutation of pension received in lumpsum was earlier considered as a capital receipt and not revenue and accordingly was not chargeable, after the change in the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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