1979 (12) TMI 52

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....r month plus certain percentage of profits. Subsequently, by a resolution passed in December, 1961, his services as managing director were terminated by the end of December, 1961. Ishwar Dass claimed that thereby he was put to loss as he would have, in the normal circumstances under the original resolution, continued to remain in service up to the month of January, 1964. The board of directors, therefore, considering his submission allowed him a consolidated amount of Rs. 15,200 by way of compensation for the estimated loss due to his premature retirement. He was also allowed an amount of Rs. 6,300 as salary for the period from April 1, 1960, to the end of December, 1961. For the assessment year 1962-63, Ishwar Dass filed his return d....

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....ned the present reference with the following question for opinion of this court : " Whether, on the facts and in the circumstances of the case the Tribunal was justified in holding that the sum of Rs. 15,200 was rightly taxed as profit in lieu of salary, within the meaning of section 17(3)(i) of the Income-tax Act, 1961 ? " It has been sought to be urged that under the 1922 Act, as had existed after the amendment of 1955, the term " profits in lieu of salary " included the words " whether solely as compensation for loss of employment or for any other consideration ". The words, it is pointed out, have not been incorporated in s. 17(3) of the 1961 Act and, therefore, it should be assumed that the type of payment received by the assesse....