02 February 2010
If the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the Income tax Act,1961 . In this regard the decision of the Karnataka High Court in A. Ratnakar v. Addl. CIT [1981] 128 ITR 527 can be applied.This was also followed by Tribunal in the case of Income-tax Officer v. Dr. G.N. Ramachandran 1 ITD 902.
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