TaxTMI 
TaxTMI 
2026 (7) TMI 52
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustrial dispute for wage revision which was pending before the Industrial Tribunal, Chennai in O.P.No.62 of 2025. 3. In view of the pendency of the aforesaid wage revision dispute between the Petitioner and the 3rd Respondent Company, a settlement was arrived at, and a Settlement Agreement dated 10.01.2026 was signed under Section 57(1) of the Industrial Relations Code, 2020 read with Rule 25 of the Tamil Nadu Industrial Disputes Rules, 1958. 4. As per the aforesaid Settlement, each of the 61 employees were entitled to receive a sum of Rs. 5,00,000/- towards Voluntary Retirement Scheme (VRS) and a sum of Rs. 40,50,000/- towards loss of salary of each of the workers whose names were specified in Annexure-II series to the aforesaid Settlement dated 10.01.2026. 5. Apart from the above, the 3rd Respondent also undertook to make a one-time payment of a sum of Rs. 50,000/- towards the arrears of wage revision for the period between 01.12.2023 and 31.12.2025. 6. Under the Settlement Agreement, it has been stated that the aforesaid amount of Rs. 45,50,000/- (Rs.5,00,000/- + Rs. 40,50,000/-) towards Voluntary Retirement Scheme (VRS) and compensation for loss of salary for the re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....per assessment and therefore it is not open for the Petitioner to approach this Court and in any event it is not expected that the Petitioner cannot ask to direct the 3rd Respondent Company to refund the amount to the members of the Petitioner Union towards the amount which has been deducted as per the assessment made by the 3rd Respondent Company. 14. Learned counsel for the 3rd and 4th Respondents Company has drawn attention to a decision of the Division Bench of the Patna High Court in Syed Jamaluddin Ali Vs. State Bank of India, through the General Manager-I and others, (2021) 1 BLJ 152 (PHC). Specifically, a reference was made to Paragraph Nos.21, 22, 23 and 25 from the said decision. 15. It is further submitted that in case it is the case of the respective members of the Petitioner Union that amounts in excess of tax deductable has been remitted by the 3rd Respondent Company, it is always open for the Petitioner to file appropriate application under Section 89 of the Income Tax Act, 1961 and for substantial refund of the tax depending upon the tax liability of the members of the Petitioner Union. 16. Mr.B.Ramasamy, learned Senior Standing Counsel for the 1st and 2nd ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....issible, is to be examined and granted by the Assessing Officer upon assessment, and any excess tax deducted can be claimed as refund in accordance with the procedure prescribed under the Income Tax Act, 1961. 24. It is further submitted that the principal assessment jurisdiction of the 3rd Respondent lies outside the territorial limits of the Madras High Court. As per official Income Tax Records, the Company is assessed under authorities having jurisdiction at Kolkata and / or other competent jurisdictions, including corporate offices at Gurugram, Haryana. The statutory compliances relating to deduction and deposit of Tax Deducted at Source (TDS) are governed by the jurisdictional Assessing Officer outside Tamil Nadu. Therefore, no part of the cause of action relating to tax computation, assessment or refund arises within the territorial jurisdiction of the Madras High Court, and the present Writ Petition is liable to be dismissed for want of territorial jurisdiction. The answering Respondents submit that the deduction of Tax Deducted at Source (TDS) was carried out strictly in compliance with statutory mandate and in accordance with the settlement dated 10.01.2026. the dispute....
X X X X Extracts X X X X
X X X X Extracts X X X X
....c sector company ; or (ii) any other company ; or (iii) an authority established under a Central, State or Provincial Act ; or (iv) a local authority ; or (v) a co-operative society ; or (vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) ; or (vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961) ; or (viia) any State Government; or (viib) the Central Government; or (viic) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf, on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i), a scheme of voluntary separation, to....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto; (ii) any payment [other than any payment referred to in clause (10] 5[, clause (10A)] 6[, clause (10B)], clause (11), 7[clause (12) 8[, clause (13)] or clause (13A)] of section 10], due to or received by an assessee from an employer or a former employer or from a provident or other fund 9***, to the extent to which it does not consist of contributions by the assessee or 10[interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy. Explanation. For the purposes of this sub-clause, the expression "Keyman insurance policy" shall have the meaning assigned to it in clause (10D) of section 10;] [(iii) any amount due to or received, whether in lump sum or otherwise, by any assessee from any person- (A) before his joining any employment with that person; or (B) after cessation of his employment with that person.] 32. Thus, for the aforesaid purpose, Form 10E has been prescribed under Rule 21A of the Income Tax Rules, 1962. 33. As per the provis....