1998 (4) TMI 3

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ght in holding that the amounts of Rs. 28,347, Rs. 33,890, Rs. 41,629 and Rs. 45,821 received by the assessee from the British Government for the assessment years 1978-79 to 1981-82 were taxable in his hands as salary ?" The relevant facts as set out in the statement of the case are : The assessee received from the British Government sum of Rs. 28,347, Rs. 33,890, Rs. 41,629 and Rs. 45,281 as pension for the assessment years 1978-79 to 1981-82. He was an employee of the Somali Government from April 10, 1926, until April 8, 1950. From April 9, 1950, he was an employee of the Aden Government until his retirement on August 24, 1956. During the time when the assessee was in service, Somaliland and Aden (Yeman) were under the colonial rule of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s made for payment of pensions to the erstwhile Government servants of the British Crown, the British Government considered that the pensioners concerned should continue to receive the sums to which they are entitled to without interruption. For this purpose, they proposed to make ex-gratia loan advances recoverable solely from arrears of pension when the arrears are eventually paid. Thus, the pensioners were assured of the continuous payment of their pensions as if the Somali authorities had paid the pensions. An undertaking was obtained from those pensioners by the British Government to the effect that as and when the Somali Government makes arrangements to pay the pensions, such amounts would be adjusted towards the amount which the Brit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... a and that the amount received by him were paid to him by the British Government in consideration of the services rendered by him to the British Government when it was the colonial power. The pension was at all times paid by the British Government. Even after the independence of Somaliland the pension was to be paid by the Crown agents of the British Government on behalf of the Somali Government and the funds required for such payment were also to come from the British Government. The Somali Government, in fact, had, assumed no liability at all for payment of pension as the amount for payment of such pension was to come from the British Government by way of grant-in-aid. The British Government by continuing to pay the pension and even re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X