Judgment

KAPUR, J. : This is an appeal by special leave against a judgment and order of the High Court of Bombay. The assessee Her Highness Maharani Kesarkunverba Saheb, the Raj Mata of Morvi State, is the appellant and the Commissioner of Income-tax Bombay, North, is the respondent. The question that arises for decision is whether the annual cash allowance paid to the appellant in circumstances stated below falls within Paragraph 15 (1) (i) of the Part B States (Taxation Concessions) Order, 1950 (hereinafter referred to as the Order) and is therefore exempt from income-tax.

2. The appellant was receiving from the Morvi State since 1922 an allowance called Jiwai (maintenance allowance). By a Resolution dated September 26, 1947 passed by His Highness Lukhdhirji of Morvi, the husband of the appellant, it was resolved that a sum of Rs. 5,000/- per month be paid to the appellant and provision be made for the amount by the Treasury Office in the Budget in the same manner as before. On January 21, 1948 His Highness Lukhdhirji abdicated and his son His Highness Mahendra Singhji succeeded to the rulership. The covenant for the formation of Kathiawar States Union was signed on January 23,