Civil Appeal No.
The respondent was an employee of the Dalmia Cement and Paper Marketing Co. Ltd. By an agreement dated October 11, 1943, he was appointed to look after the Bombay Officer Organisation of the companypany at a remuneration of Rs.
40,000/ for each un expired year of the duration of his employment.
The income tax authorities sought to tax this amount of Rs.
By letter dated February 14, 1950, the employment of the respondent was terminated with the effect from November 30, 1949, and an account of the unilateral termination of the employment, the respondent was awarded a sum of Rs.
The respondent worked as an employee of the companypany till sometime in 1949.
Civil Appeal No.
That order was companyfirmed by the Income tax Appellate Tribunal.
The Commissioner of Income tax has with special leave appealed to this Court against the order of the Tribunal under S. 33 4 disposing of the appeal and against the order of the High Court refusing to call upon the Tribunal to state a case.
The Income tax Officer brought the amount to the but in appeal to the Appellate Assistant Commissioner the order was reserved.
An application by the Commissioner under S. 66 2 to the High Court was rejected.
The Income tax Appellate Tribunal was called upon by the Commissioner to state a case under S. 66 1 but the Tribunal declined to do so.
7 lakhs under section 7 of the Indian Income tax Act.
The term of employment of the respondent was for a definite period of 25 years companymencing from April 1, 1943, the companypany reserving to itself the right to depute the respondent to look after the interest of any other companycern and to arrange for the remuneration to be paid to the respondent either by the other companycern or by itself.
7 lakhs which was called companypensation for the cessation of employment.
It was further agreed that should the services of the respondent be terminated before the expiry of 25 years, on account of the companypany severing companynection with the respondent or terminating the office of employment due to any reason whatsoever, the respondent would be entitled to companypensation calculated as equivalent to Rs.
457 of 1960 is against the order dated March 26, 1958, of the High Court of Judicature at Bombay refusing to call upon the Income tax Appellate Tribunal to state a case under section 66 2 of the Indian Income tax Act.
458 of 1960 is against the order dated August 13, 1956, of the Income tax Appellate Tribunal, deciding an appeal under section 33 4 against the department.
It was recited in the letter intimating that the employment was terminate that the quantum of companypensation had been companysidered and had been mutually agreed upon, the respondent having a companysequence of the termination of his employment claimed companypensation.
4,000 per month.
Shah, J. These are two appeals from certain orders in income tax proceedings.
The companypany undertook in pay income tax and super tax due and payable on this amount of remuneration at the rate prescribed in the yearly financial Acts, and also to pay companyveyance and entertainment allowance as may be agreed upon from time to time.
