Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1986)16ITD652(Ahd.)
..... the grant of actual exemption from income-tax, will, however, be subject to the fulfilment of all other conditions laid down in this regard in section 10(6)(vii)(a) of the income-tax act, 1961, as amended from time to time and also subject to the condition that payment of per diem charges are in accordance with the provisions of their contract (including escalations). ..... it may be noted that the exemption of salary and/or allowance of the technician(s) from income-tax will up to an amount of rs. ..... it may be noted that this approval of the contract of service(s) of the technicians mentioned above is with reference to the matter of exemption from payment of income-tax on the salary/allowances payable to him/them and cannot be assumed to convey the acceptance of the government to the remittance of foreign exchange, etc. ..... in this view of the matter, we have no hesitation in accepting the submissions made on behalf of the assessee that the salary including perquisites received by him would be exempt from tax under section 10(6)(viia).15.5 as regards the taxability of living allowances received by the assessee, the same is fully covered by the aforesaid decision in the case of s.g. ..... relying on the aforesaid decision of the hon'ble gujarat high court, the learned counsel for the assessee further submitted that since the salary received by the assessee was nothing but 'a retention allowance' the same cannot be taxed by invoking the provisions of section 9(1)(ii). .....
Tag this Judgment!Court : Supreme Court of India
Reported in : 2009(5)ALT1(SC); JT2009(9)SC229; (2009)IVLLJ57SC; 2009(9)SCALE99; (2009)8SCC431; 2009(7)LC3037(SC):669458
..... this court struck down the amendment on the ground that the same violated fundamental right acquired by the employees of the panchayats and observed:now, in 1978 before the amending act was passed, thanks to the provisions of the principal act of 1961, the ex-municipal employees who had been allocated to the panchayat service as secretaries, officers and servants of gram and nagar panchayats, had achieved the status of government servants. ..... from 6.78 lakhs to 12.34 lakhs and in 1993-1994, the state government had to spend more than 80% of total revenue in payment of salaries, allowances, pension, etc. ..... the high court also issued consequential directions for equation of posts, revision of pay scales and payment of salaries. ..... since no government can allow such total neglect of welfare and developmental activities the employees of the state will not be getting salaries on time and eventually they will not be getting their full salary also.the irregular appointments are adversely affecting the interest of several thousands of unemployed persons who have registered in the employment exchange and awaiting their turn for orders. ..... the expenditure particulars show that the amount spent on the salaries, allowances and pension of government employees, panchayat raj employees, employees paid out of the grant-in-aid, amounts to a figure of rs. .....
Tag this Judgment!Court : Karnataka
Reported in : (1989)78CTR(Kar)42; [1989]179ITR521(KAR); [1989]179ITR521(Karn); [1989]46TAXMAN45(Kar)
..... - the question that arises for decision in this writ petition is whether dearness allowance, additional dearness allowance, city compensatory allowance and house rent allowance form part of the 'salary' of the salaried employees represented by the petitioner-union and whether the said allowances are taxable under the income-tax act under the head 'salaries'.this contention does not survive in view of the amendment to section 2(24) of the income-tax act, 1961 ('the act'), by the direct tax laws (amendment) act, 1989 (3 of 1989), inserting sub-clauses (iii)(a) and (iii)(b) after sub-clause (iii). ..... these payments made in the form of allowances and special allowances accrued and are received by the salaried person by virtue of his office and employment.for the reasons stated above, the writ petition does not survive and is, accordingly, dismissed as having become infructuous in view of the amendment to section 2(24) of the income-tax act, 1961. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR1989KAR1498; 1989(1)KarLJ323
..... this contention does not survive in view of the amendment to section 2(24) of the income-tax act, 1961 ('the act'), by the direct tax laws (amendment) act, 1989 (3 of 1989), inserting sub-clauses (iii)(a) and (iii)(b) after sub-clause (iii). ..... the question that arises for decision in this writ petition is whether dearness allowance, additional dearness allowance, city compensatory allowance and house rent allowance form part of the 'salary' of the salaried employees represented by the petitioner-union and whether the said allowances are taxable under the income-tax act under the head 'salaries'. 2. ..... now that these allowances are treated as income of the salaried persons the total income of the petitioners for the purpose of the charging section 4 of the act will include all these allowances as well and other consequences of computation of the said income for the purpose of levy of income-tax on such allowances automatically follow under the act. 5. ..... this amendment sets at rest the controversy whether the special allowances paid to the salaried persons enumerated above are includible in their 'income' as defined under section 2(24) of the act. 4. ..... these payments made in the form of allowances and special allowances accrued and are received by the salaried person by virtue of his office and employment. 7. .....
Tag this Judgment!Court : Kolkata
Reported in : [1992]196ITR860(Cal)
..... 42 of 1990 :' whether, on the facts and in the circumstances of the case and on a proper interpretation of the amendments made to the payment of bonus act, 1965, and the income-tax act, 1961, on september 25, 1975, the tribunal was right in holding that the proviso to sub-clause (ii) of sub-section (1) of section 36 of the income-tax act, 1961, was applicable in respect of the assessment year 1975-76 and as such the claim of the assessee for deduction of the bonus liability had to be determined with reference to the said proviso ? ..... 42 of 1990 :' whether, on the facts and in the circumstances of the case and on a proper interpretation of the proviso to sub-clause (ii) of sub-section (1) of section 36 of the income-tax act, 1961, the tribunal was right in holding that payments made in excess of the minimum bonus provided under the payment of bonus act, 1965, but within the maximum limit of 20%was not an allowable deduction on the ground that it was not payable under the said bonus act ? ..... (iii) that deduction for bonus liability could not be allowed in excess of 4% of the salaries and wages of the employees payable in respect of the aforesaid previous year corresponding to the assessment year 1975-76 ? .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1993)45ITD344(Pune.)
..... of course, in accordance with the provisions of payment of bonus act, 1965 whether the profits are made or losses are incurred the payment of bonus at 8.33 per cent is payable and such payments are allowable as deduction.the assessing officer allowed the payment of bonus made at 8.33 per cent and disallowed the excess payment of productivity bonus, diwali bonus and ex gratia payment totalling to rs. ..... the payment of bonus and ex gratia at 30 per cent cannot be considered as justifiable either under the payment of bonus act, 1965 or the amended provisions of section 36(1)(ii) of the income-tax act, 1961. ..... the proviso to this section makes it clear that there can be no agreement or settlement even if it is linked with production or productivity for the payment of bonus which allows the bonus above 20 per cent of the salary or wages earned by them during the relevant accounting period. ..... it is not in dispute that the appellant was not able to recover the current year's depreciation and carry forward unabsor-bed depreciation or investment allowance of the previous year.in these circumstances, whether the payment of bonus in excess of 8.33 per cent of the salary or wages earned by the employees would be a proper decision. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : JT1994(4)SC397; 1995LabIC1768; 1994(3)SCALE273; (1994)5SCC450; [1994]Supp1SCR651; 1995(1)SLJ111(SC); (1994)3UPLBEC1622
..... the high court allowed the writ petition holding that the members of the panchayat service belonging to the local cadre were government servants and issued consequential directions for equation of posts, revision of pay-scales and payment of salaries. ..... view of this latest pronouncement by the constitution bench of this court, the law appears to be well-settled and the haryana government cannot take away the accrued rights of the petitioners and the appellants by making amendment of the rules with retrospective effect.for the foregoing discussion, the writ petitions as well as the appeals are allowed and the orders of the high court dated october 10, 1980 are quashed and the impugned rule 4 (ii) of the punjab government national emergency (concessions) rules 1965 as amended by the haryana government gazette notification no. ..... the state government filed appeal against the judgment of the high court before this court, but during the pendency of the appeal, the gujarat panchayats (third amendment) act, 1978 was enforced with a view to nullify the basis of the decision of the high ..... the gujarat panchayats act, 1961 aimed at democratic decentralisation of important governmental functions by vesting such functions in gram nagar, taluqa and district panchayats and by enabling the state government to transfer other powers, functions and duties to the panchayat ..... statistical service (the service) is governed by statutory rules called the indian statistical service rules, 1961 (the rules). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (2006)100ITD29(Nag.)
..... this amendment will also take effect from 1.4.1975, and will accordingly apply for the assessment year 1975-76 and subsequent years.perusal of the aforesaid circular makes it evident that revenue authorities had to apply provisions of section 10(10)(iii) of income-tax act, 1961 for the purpose of considering the exemption limit at the time of receipt of gratuity from the employer in the cases of employees receiving gratuity under section 4(5) of payment of gratuity act. ..... it was submitted by him that the obligation of tax deducted at source is provided under section 192 of the income-tax act, 1961 and it provides for tax deduction at source on the estimated income from salaries. ..... under the amended provision, exemption will be allowed in an amount not exceeding one-half month's salary for each year of completed service, calculated on the basis of the average salary for the three years immediately preceding the year in which the gratuity is paid or 20 months salary so calculated or rs. ..... in such cases, the exemption was allowed under the residuary provision and was accordingly limited to one-half month's salary for each year of completed service, calculated on the basis of the average salary for the three years immediately preceding the year in which the gratuity was paid, or 15 months salary so, calculated, or rs. .....
Tag this Judgment!Court : Himachal Pradesh
Reported in : [1993]200ITR517(HP)
..... the main contention of the petitioners which are associations of employees and employees working in simla and its suburbs, as asserted in the writ petitions, is that these allowances are neither 'salary' nor 'perquisites' as defined in section 17(1) and (2) of the income-tax act, 1961 (hereinafter referred to as 'the act'), and, consequently, cannot be included in the total income under the head 'salary' for the purpose of income-tax assessment. ..... 10(14) was amended by the direct tax laws (amendment ) act, 1987, with effect from april 1, 1989, and the amended sub-clause reads as follows :'(14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit as the central government may, by notification in the official gazette, specify, to the extent to which such expenses are actually incurred for that purpose ; (ii) any such allowance granted to the assessee ..... these payments in the form of allowances and special allowances accrue and are received by salaried persons by virtue of their office and employment. ..... consequently, it was held that it was neither an emolument nor a fee nor a profit nor a perquisite but only a payment for part reimbursement of the extra expenses incurred by the assessee as of necessity by reason of his posting. .....
Tag this Judgment!Court : Chennai
Reported in : (1997)140CTR(Mad)508; [1997]227ITR211(Mad)
..... 36(1)(ii) of the it act, 1961, must be satisfied, if the payment made in excess of amount allowed by the payment of bonus act, is to be regarded as reasonable within the meaning of s. ..... 20,950 which was similar to the payment of salary of rs. ..... of the salary and assuming that the payment of bonus act did not authorise payment of bonus in excess of 20 per cent. ..... whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the bonus paid was treated as part of the remuneration and not as a bonus out of profits and, therefore, the payment of bonus act has no application to the assessee's case 2. ..... according to the aac the assessee is a muslim and there is a custom among the muslim businessmen to pay less salary and higher bonus. 6. ..... 36(1)(ii) of the act was not attracted, since the payment itself was only a remuneration and not bonus at all. ..... considering the nature of the business, the amount of bonus paid in the previous earlier year and the amount of bonus paid in the assessment year under consideration in relation to the salary paid, we are of the opinion that the assessee satisfied the conditions prescribed under the second proviso to s. ..... so long as this section remains without amendment, the inference is clear that the categories covered by the act, as amended, did not deal with customary bonus.' 11. .....
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