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TMI Blog2008 (2) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... for the petitioner. Bharmagowda B. Goudar for respondents Nos. 1 and 2. Aravinda Kumar for respondents Nos. 4 to 6. JUDGMENT SUBHASH B. ADI J.- This writ petition is directed against the order dated November 30, 2005, passed by the first respondent, confirming the order of the second respondent dated February 8, 2005. 2. The deceased workman filed a claim petition before the Controlling Authority under the Payment of Gratuity Act, 1972 (hereinafter referred to as "the Act"), inter alia, claiming the difference of gratuity amount on the ground that he joined the services of the Corporation on April 24, 1972, and he retired on October 14, 1997, and had completed 27 years 3 months' complete service and he was not paid the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount, despite the provisions of section 13 of the Act, the Central Board of Direct Taxes, the Chief Commissioner of Income-tax and the Assistant Commissioner of Income-tax were made parties to this writ petition. 6. Sri Aravind Kumar, learned Assistant Solicitor General appearing for respondents Nos. 4 to 6 submitted that, under section 192 of the Income- tax Act, the employer is required to deduct income-tax on the amount payable towards the salary. He referred to section 17 of the Income-tax Act and submitted that "salary" is defined under the said provision, which includes gratuity amount also. By referring to sections 192 and 17 of the Income-tax Act, learned Assistant Solicitor General submitted that income-tax is deductible fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ?" 9. No doubt, section 192 of the Income-tax Act requires the employer to deduct the income-tax from the salary and the salary is defined under section 17 of the Income-tax Act, which includes wages, any annuity or pension, any gratuity, any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages, any advance of salary and other payments. However, section 10 of the Income-tax Act excludes certain amounts to be included in the total income. Section 10 sub-section (10) deals with the exclusion of the gratuity amount from the total income. The relevant provision for the purpose of this case is, section 10 sub-section (10) clause (iii) of the Income-tax Act, which reads as under: "10.(10)(iii) any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to an employee in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court This also makes it clear that the protection is given against the attachment, even for recovery of the revenue also. The Income-tax Act also excludes the gratuity amount from the total income up to the limit fixed. The contention of the learned counsel for the Corporation that, it is only in respect of payment of gratuity under the Act and not under the Regulations, I find that such a contention is not tenable and is not in consonance with the provisions of the Income-tax Act. The Income-tax Act excludes the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment." 12. The services of the respondent were terminated on account of the accident caused by the deceased workman-driver and in the said accident, it is alleged that the bus got damaged and damage was quantified to the tune of Rs. 25,000 and the notice was issued and an order has been passed. To this extent, the provisions of section 4(6) of the Act confer power on the Corporation to deduct the said amount from the gratuity amount. Hence, to this extent, the writ petition requires to be allowed. 13. Accordingly, the writ petition is party allowed. The Corporation is entitled to deduct the damage to the tune of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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