1999 (9) TMI 29

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ary retirement being accepted, the concerned workman was to be paid certain amount as compensation ; the compensation was to be calculated in accordance with any of the three alternative modes, at the option of the concerned workman, as provided under clause 3 of the Scheme. It is significant to note that in each of the modes for calculation of compensation, it was clearly and expressly stated that the income-tax payable, if any, will be deducted at source as required under the Income-tax Act/ Rules currently in force. Four workmen, out of whom three are respondent No. 2 in each of these three writ petitions, opted for voluntary retirement in terms of the Scheme. Their request was accepted and they were paid compensation as provided u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Apart from the question of maintainability, even on the merits, I fail to see how the action of the management can be faulted in making deductions at source for payment of income-tax as it was expressly and unequivocally provided in the Scheme. Mr. Ashok Kumar Sinha and Mr. Alok Kumar Sinha made spirited arguments that the compensation payable to a workman under the scheme of voluntary retirement, was not exigible to income-tax and the compensation amount was not covered by the definition of income within the meaning of the Income-tax Act, Mr. Alok Kumar Sinha submitted that the compensation paid to the workman was in lieu of his future salary and on being spread out on accrual basis the compensation amount will not be exigible in income....