TaxTMI 
TaxTMI 
2014 (2) TMI 629
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....ority for grant of said amount and controlling authority by order dated 16.04.2009 allowed the application filed by petitioner determining the total gratuity payable by the petitioner-corporation at Rs.4,59,078/- and if not paid within 30 days simple interest at 10% p.a. was granted. Aggrieved by this order corporation preferred an appeal before first respondent and appellate authority by order dated 29.03.2010 has rejected the said appeal. Aggrieved by the said orders, petitioner is before this court questioning these two orders. 3. It is the contention of Smt.Nirmmala, learned counsel appearing for petitioner-corporation that corporation had determined the total number of active service of petitioner rendered at 28 years 11 months afte....
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....titioner-corporation did not produce any orders passed against third respondent declaring the period of absence as unauthorised and in the absence of the same controlling authority as well as appellate authority have rightly rejected the claim of the corporation to deduct the said period from out of total active service and contends that there is no error in the said finding. She would also contend that corporation was not entitled to deduct the income tax amount from and out of the gratuity payable and as such said deduction made is liable to be made good by corporation to the respondent No.3. She also seeks for confirming the orders passed by respondents 1 and 2 and prays for dismissal of the writ petition. 5. Sri.Jagadeesh Mundaragi, ....
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....ve been made as under: (a) Total amount of gratuity determined Rs. 3,97,257 (b) deduction towards income tax Rs. 27,983 (c) deduction towards group insurance & Identity card (400+200) Rs. 600 ------------- (d) Total deductions = (b) + (c) Rs. 28,583 --------------- Balance amount payable Rs. 3,68,674 ========== It is not in dispute that said amount of Rs.3,68,674/- has been paid by the corporation to third respondent and this fact is also not disputed by learned counsel appearing for respondent no.3 before this court. 8. The point of controversy between the Rs.employee' and Rs.corporation' revolves under deduction made under two heads namely: (1) Income Tax (2) Number of years of active service taken into consideration ....
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....r as deduction of Rs.600/- made by the corporation towards group insurance and providing identity card is concerned, said deduction also cannot be permitted in view of absolute bar under section 14 of the Gratuity Act. Said deduction also deserves to be rejected and that is what has been done by the controlling authority and appellate authority which cannot be found fault with. RE: Break in Service: On the one hand petitioner-corporation claims that 4 years 6 months and 12 days is to be deducted from the total active service rendered by third respondent which admittedly is 33 years 5 months, 17 days. Section 2A of the Gratuity Act defines Rs.Continuous Service' which reads as under: 2A Continuous Service:- "(1) an employee shall be sa....
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....service' and holding that there is no interruption in service rendered by third respondent. Said finding is based on scrutiny of records and not being contrary to Exhibit R-1, I do not find any other good ground to interfere with the said finding in exercise of writ jurisdiction. In that view of the matter the finding of the controlling authority by taking active years of service at 33 years 5 months deserves to be accepted. 10. Thus, the total gratuity payable to third respondent by petitioner-corporation would be as under: (a) active years of service 33 years 5 months (b) last basic wage Rs.13,738/- Rs.13,738 X 33.5 = Rs.4,59,078/-(Rupees Four Lakhs Fifty Nine Thousand Seventy Eight Only). In view of the same, gratuity payable by th....