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PETITIONER: ALL INDIA REPORTER LTD., NAGPUR
Vs.
RESPONDENT: RAMACHANDRA DHONDO DATAR
DATE OF JUDGMENT: 29/11/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1961 AIR 943 1961 SCR (2) 773
ACT: Income-Tax--Decree for compensation for wrongful termination of service--Arrears of salary, interest and costs, if amount to salary--Power of employer to deduct income-tax from salary--Indian Income Tax Act, 1922 (11 of 1922), SS. 18(2), 46(5).
HEADNOTE: In a civil suit the respondent obtained a decree against his employer the appellant company for a sum which included com- pensation for wrongful termination of his service, arrears of salary, interest and costs of the suit, and then applied for execution of the decree. The Income-tax Officer served a notice upon the respondent under s. 46 of the Indian Income-tax Act and applied to the District Judge that the appellant be permitted to deduct at source the income-tax, surcharge and super tax on the sum awarded to the respondent and pay the same in the Government Treasury. The appellant- company also moved the executing court for a declaration that they were entitled and bound to deduct the tax due on the amount. The District judge directed the appellant company to pay the income-tax and super-tax to the Income Tax Department and pay the balance in Court together with a receipt for t...