https://www.taxtmi.com/caselaws?id=5889 A lump-sum compensation ordered in lieu of reinstatement was required to be paid without income-tax deduction where the payment fell within the statutory exemption for retrenchment compensation and the operative direction did not shift the tax burden to the workman. The deduction was therefore unjustified, and the employer had to restore the deducted amount with interest. The same compensation was also separate from back wages: because the award granted compensation only in lieu of reinstatement, and did not include past wages, the workman remained entitled to back wages in addition to the lump sum. en-us Tue, 04 Sep 1984 00:00:00 +0530 Tue, 23 Jun 2026 16:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5889 A lump-sum compensation ordered in lieu of reinstatement was required to be paid without income-tax deduction where the payment fell within the statutory exemption for retrenchment compensation and the operative direction did not shift the tax burden to the workman. The deduction was therefore unjustified, and the employer had to restore the deducted amount with interest. The same compensation was also separate from back wages: because the award granted compensation only in lieu of reinstatement, and did not include past wages, the workman remained entitled to back wages in addition to the lump sum. Case-Laws Income Tax Tue, 04 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5889