JUDGMENT
1. By this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to “as the Act”), the Income-tax Appellate Tribunal, ‘A’ Bench, Patna, has referred the following question of law to this court for its opinion :
“Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the award of Rs. 1,150 received by the assessee is exempt from income-tax under Section 10(17B) of the Income-tax Act, 1961 ?”
The material facts giving rise, to this reference, briefly, are as follows :
The assessee is assessed in the status of an individual and was, at the material time, working as an Income-tax Officer. In appreciation of the meritorious work done by the income-tax personnel for the success of the Voluntary Disclosure Scheme, 1975, the Government of India decided to grant a reward of an amount equal to one month’s basic pay (vide notification dated January 16, 1976). In pursuance of this notification, the asses-see received a sum of Rs. 1,150 by way of reward during the assessment year 1976-77. The assessee claimed exemption from income-tax of this amount under Section 10(17B) of the Act. The Income-tax Officer rejected that claim. On appeal, the Appellate Assistant Commissioner upheld the contention advanced on behalf of the assessee that the amount of reward was not includible in computing the total income of the assessee in view of the provisions of Section 10(17B) of the Act. On further appeal before the Tribunal, the Tribunal agreed with the finding of the Appellate Assistant Commissioner in this behalf and dismissed the appeal. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.
At the time of hearing, none appeared on behalf of the assessee. Having heard Mr. Rajgarhia, learned counsel for the Revenue, we have come to the conclusion that this reference must be answered in the negative and in favour of the Revenue. The relevant provisions of Clause (17B) of Section 10 of the Act are as under :
“10. Incomes not included in total income. — In computing the total income of a previous year of any person, any income falling within any of the following Clauses shall not be included –…
(17B) any payment made, whether in cash or in kind, as a reward by the Central Government or any State Government for such purposes as may be approved by the Central Government in this behalf in the public interest;”.
From a perusal of the aforesaid provision, it is clear that a payment made as a reward by the State or Central Government is not includible in computing the total income only when the reward is for such purposes as may be approved by the Central Government in this behalf in the public interest. In the instant case, there is no material on record for holding that the purpose for which the reward in question has been given has been approved by the Central Government in public interest for the applicability of Clause (17B) of Section 10 of the Act. It is no doubt true that the payment has been made by the Central Government to the assessee as a reward and that the said payment is also in the public interest. But, unless and until it is shown by the assessee that such reward has been approved by the Central Government for purposes of exemption under Section 10(17B) of the Act, we are of opinion that such reward would not qualify for exemption under Section 10(17B) of the Act. The Tribunal, therefore, was not right in holding that the award of Rs. 1,150 received by the asses-see was exempt from income-tax under Section 10(17B) of the Act.
2. Our answer to the question referred to this court is, therefore, in the negative and in favour of the Revenue. As none appeared on behalf of the assessee, parties shall bear their own costs of this reference.
3. Let a copy of this judgment be forwarded by the office of this court to the Assistant Registrar, Income-tax Appellate Tribunal, ‘A’ Bench, Patna.