1986 (1) TMI 15

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....ntiff: A.N. Bhattacharya, Adv. For the Respondents/Defendant: S. Chakraborthy, Adv. JUDGMENT SATISH CHANDRA C.J.- During the accounting period relevant to the assessment year 1970-71 ending on March 31, 1970, the employer terminated the services of the assessee by giving him the requisite three months' notice. In addition to the pay and salary for the period of notice, the employer....

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.... meaning of section 17(3). The Tribunal took the view that the word " compensation " denotes an idea that it is paid in lieu of something which the assessee could claim as of right and of which he was being deprived. The amount in question was an ex gratia payment, i.e., it was paid by the employer voluntarily without being under any obligation to pay it. Section 17 deals with salary, perquisit....

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....termination or in lieu of the termination of the employment. The letter issued by the employer dated July 3, 1969, stated that the amount was being paid ex gratia. There is nothing to indicate that the assessee was entitled to continue in the employment of the company up to any particular age. Under the conditions of service, his services were liable to be terminated on giving three months'....