G. H. Krishna Iyer and ors. Vs. Union of India and ors. - Court Judgment

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head note: income tax income--allowances to salaried persons of various kinds--applicability of s. 2(24)(iiia)/(iiib) with retrospective effect from 1-4-1962. held : basic pay, dearness allowance, house rent allowance, city compensatory allowance, training allowance, project allowance, technical allowance and other compensatory allowances, etc. form part of the salary. amendment made to the definition of income in s. 2(24) by direct tax laws (amendment) act, 1989 came into effect from 1-4-1962, the date on which it act, 1961 itself came into force. the clause has been inserted to extend the scope of income so as to include allowances, benefits, etc. through insertion of sub-cls. (iiia) and (iiib) with a view to including all such allowances within the ambit of the word `income'. income tax act 1961 s.2(24) - k. a. nayar, j. :in all these original petitions the question to be considered is whether basic pay, dearness allowance, house rent allowance, city compensatory allowance, training allowance, project allowance, technical allowance and other compensatory allowances, etc. will form part of the salary for the purpose of the it act. counsel for the revenue mr. p. k. r. menon brought to my notice the amendment made to the definition of income in s. 2(24) by taxation laws (amendment) act, 1989 [sic-direct tax laws (amendment) act, 1989] which came into effect from 1st april, 1962 the date on which it act, 1961 itself came into force. the clause has been inserted to extend the scope of income so as to include allowances, benefits, etc. counter affidavit to that effect also has been given on behalf of the first respondent in which the amendment also has been extracted. in view of this i find no merit in these original petitions.the original petitions are dismissed.