1997 (4) TMI 68

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....uestion referred for the opinion of this court is as follows: "Whether, on the facts and in the circumstances of the case, the sum of Rs. 6,078 being damages paid under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, is deductible under Chapter IV-D of the Income-tax Act, 1961?" The real question to be determined would be whether damages paid under secti....

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....s to section 10(2)(xv) of the Indian Income-tax Act, 1922. The Supreme Court in Organo Chemical Industries v. Union of India [1979] 55 FJR 283; AIR 1979 SC 1803, while considering the constitutional validity of section 14B of the aforesaid Act, has observed that the predominant object of section 14B is to penalise the employer so that he may be deterred from making any further default. The cour....