Under s. 66 1 of the Indian Income Tax Act, the Incometax Appellate Tribunal referred the following question of law for the opinion of the High Court Whether the sum of Rs.
rhe asscssee took an appeal to the Appellate Assistant Commissioner who held that the sum of Rs.
25,200/ .
Appeal by special leave from the judgment and decree dated November 22, 1960, of the Patna High Court in Misc.
The assessee then obtained special leave from this companyrt in pursuance whereof the present appeal has been brought to this companyrt.
25,200/, though calculated on the basis of twelve times his monthly salary, was numberhing but companypensation for the loss of service and was therefore number taxable as income in the shape of salaries.
The terms of his employment as agreed upon by the assessee and the Company were incorporated in an appointment letter dated February 7, 1946.
Gopal Singh and R. N. Suchthey, for the respondent.
V. Viswanatha Sastri and M. S. Narasimhan, for the appellants.
CIVIL APPELLATE JURISDIICTION Civil Appeal No.
judicial Case No.
673 of 1962.
The judgment of the Court was delivered by K. DAB J. V. D. Talwar, who was assessee before the taxing authorities and whose legal representatives on his death are appellants before us, was employed as the General Manager of Messrs J. K. Iron and Steel Company Ltd., Kanpur.
The assessee gave a stamped receipt to the companypany for having recieved Rs.
Then there was an appeal to the Incometax Appellate Tribunal which reversed the finding of the Appellate Assistant Commissioner and held that the amount of Rs.
25,200/ paid to the assessee was really salary in lieu of twelve months numberice and, therefore, the amount was liable to be taxed under the Indian Income Tax Act, 1992.
The services of the assessee were however terminated with effect from August 31, 1947.
By its judgment and order dated November 22,1960 the High Court answered the question against the assessee.
March 26.
A formal memorandum of agreement was also executed between the parties on February 9, 1946.
740 of 1958.
25,200/ received by the assessee during the Previous year was the revenue income of the assessee liable to tax under the Income tax Act?
