9911796707
TMI Blog1981 (1) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Whether the Tribunal was justified in law in coming to the conclusion that where the Income-tax officer has exempted a particular sum from tax and the Commissioner acts under section 263 to withdraw such exemption it is for the assessee to lead evidence to show that the sum in question was exempt from tax ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the order of the Additional Commissioner of Income-tax that the amount of $ 7,725 equivalent to Rs. 57,938, received by the assessee from the Asst. Director of Jewish Hospital, Brooklyn, U.S.A., was not exempt from taxation as scholarship under section 10(6) of the Income-tax Act, 1961 ? " The relevant facts which are set out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spital by him was scholarship given to him for undergoing training in pediatrics. The Commissioner rejected the objection of the assessee and held that the assessee had not produced any evidence to show that the scholarship was wholly exempted or partly exempted under the United States law and that the employer's certificate indicated that there was relationship of employer and employee between the hospital and the assessee and, therefore, the amount received by the assessee was salary and, therefore, liable to tax under the Act. He directed the ITO to modify the assessment treating the said amount as income. Against the order of the Commissioner the petitioner preferred an appeal to the Tribunal. The Tribunal even after having noticed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid or allowed, or for the benefit of, an individual trainee to aid him in the pursuit of study and research in pediatrics." (Underlined by us). From the above certificate it is evident that the amount paid to the assessee by the hospital was for the benefit of securing training and to pursue study and research in pediatrics. Therefore, there cannot be any doubt that the entire amount paid by the hospital and received by the assessee was in the nature of scholarship to pursue study and research in pediatrics and also for the purpose of securing training in that field and it was not for the services rendered as such and the services, if any, rendered by the assessee was only incidental to the course of practical training. . Attention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the extent of $ 300 per month out of the amount received from the Jewish hospital conclusively establishes that the amount received was in the nature of a scholarship. Once it is established that the amount received was in the nature of a scholarship though the exemption given under the United States' law was limited to $ 300 per month on the ground that the course of education was not one leading to a degree, there being no such restriction under s. 10(16) of the I.T. Act, 1961, the whole of the amount received by the assessee stands exempted.' In our view, the Tribunal after having noticed the position in law in the United States was in error in stating that it was immaterial that such deduction had been given to the assessee in the Uni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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