Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Indian Income-tax Act 1922 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | lncome-Tax- Assessment- Assesee's services terminated in terms of contract- Payment of one year's salary in lieu of notice -Amount received by assessee, if compensation for loss of employment -Indian Income-tax Act, 1922 (11 of 1922) s. 7. The assessee, Mr. V. D. Talwar, was employed as General Manager by a company. According. to the service agreement, he was to get Rs. 2,000/- per month as his salary with an increment of Rs. 100/- every year. Deductions for income-tax, absence of duty etc. could be made from his salary. The agreement of service was for five years, but the same could be terminated earlier by the employer after giving a notice of 12 months or payment of salary in lieu thereof. The assessee joined as General Manager on May 1, 1946 and his services were terminated with effect from August 31, 1947. The services were not terminated for any default or misconduct on the part of the assessee but were terminated because the company did not want to continue the assessee in their employment. No notice ·of 12 months was given by the company as required by the contract. The company actually paid Rs. 18,096/1/- which was the amount due as salary for twelve months after deduction of Income-tax at the source. The Income-tax Officer held that the sum of Rs. 25,200/- was a revenue receipt of the assessee liable to be taxed under tl1e Indian Income-tax Act and he rejected the claim of the assessee that the said sum was compensation for loss of employment and the tax amounting to Rs. 7,!03/15/- should be refunded to him. The appeal of the assessee was accepted by the Appellate Assistant Commissioner but his decision wa• reversed by the Income-tax Appellate Tribunal. The question of law referred by the Tribunal to the High Court was whether the surh of Rs. 25,200/- was revenue income of the assessee or not. The high Court gave the decision against the assessee who came to this Court by special leave. |
Judge | Hon'ble Mr. Justice S.K Das |
Neutral Citation | 1963 INSC 70 |
Petitioner | V. D. Talwar (dead) And After Him His Heirs |
Respondent | The Commissioner Of Income- Tax, Bihar |
SCR | [1964] 2 S.C.R. 519 |
Judgement Date | 1963-03-26 |
Case Number | 673 |
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