M. Venkata Subbaiah vs Income Tax Officer*

Whether remuneration received by MLAs (Members of Legislative Assemblies) is taxable under the head 'Salary' or 'Income from Other Sources' --- Held: Income from Other Sources. Whether allowances received by MLAs (constituency, conveyance, telephone, clerical, medical, contingency) qualify for exemption under section 10(14) of the Income Tax Act, 1961, and whether compliance with Rule 2BB of the Income Tax Rules is mandatory for claiming such exemption --- Held: Exemption under section 10(14) is available, but the assessee must prove actual expenditure incurred for the performance of duties, and Rule 2BB applies to prescribe the allowances and limits; the onus is on the assessee to furnish evidence of actual expenditure.