1984 (8) TMI 3
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....nsel for the respondent to state what would be the adequate compensation in lieu of reinstatement. Mr. Khanduja gave some rough calculations. Having examined the calculations, we are satisfied that the appellant shall pay Rs. 2,25,000 (Rupees two lakhs and twenty-five thousand) to the respondent within two weeks from today. The amount of compensation thus awarded includes interest, costs, back-wages and compensation in lieu of reinstatement. In other words, the respondent has no further claim against the appellant. The amount calculated as compensation by this court is in lieu of back-wages and future wages which ought to have been paid from year to year. Therefore, the entire amount shall be spread over the period 1970 to 1989, 1970 being....
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....to s. 89 of the I.T. Act, 1961, which provides that it where, by reason of any portion of an assessee's salary being paid in arrears or in advance or by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of s. 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed, the ITO shall, on an application made to him in this behalf, grant such relief as may be prescribed ", he proceeded to submit that unless the relief as provided by s. 89 is claimed, the appellant-employer is under a statutory obligation to deduct income-tax from the lump sum directed to be paid from the judgment ....