High Court Of Calcutta
All India Insurance Employees’ Association & Ors. vs. Union Of India
Sections 2(24), 17
Ajit Kumar Sengupta, J.
Matter No. Nil of 1988
21st March, 1988
Counsel Appeared
P.K. Chatterjee, for the Petitioners : Sil, for the L.I.C. : Tapan Roy for the Federation of LIC Officere’s Association : Ghosh for the GIC
AJIT KUMAR SENGUPTA, J. :
Mr Mihir Bhattacharyya is directed to appear for the IT Department as he has been appearing in all the matters. The Federation of LIC of India Class-I Officers’ Association (Eastern Zone Council) is added as party respondent. The order passed herein shall also apply to the members of the federation and Mr. Ghose appears for the Insurance Company.
Let the amendment be effected within a week from date, but no reverification of the petition will be necessary. In view of the judgment delivered on March 17, 1988, in Matter No. Nil of 1988 [Syndicate Bank Officers’ Association vs. Union of India(1989) 176 ITR 223 (Cal)], this application is allowed.
The insurance company is restrained from deducting any tax on city compensatory allowance or any allowance in the nature of city compensatory allowance. Whatever tax has already been deducted during the financial year 1987-88 from the salaries of the officers and staff of the insurance company shall be refunded to each of them within four weeks from the date of communication of this order. If, however, in the meantime, the insurance company has already deposited the amount of tax deducted at source on the city compensatory allowance or similar allowance, the IT Department shall refund the same against the tax payable by each of the officers and staff of the insurance company during the financial year 1988-89. In the event any decision is rendered by the Supreme Court setting aside the decision of this Court or any other Court taking similar view, the IT Department will proceed to recover the tax refunded to the officers and staff of the insurance company in terms of this order in accordance with law.
Parties will act on the signed copy of the minutes of the operative part of this judgment.
[Citation : 176 ITR 225]
