BOMBAY GAS COMPANY LIMITED BOMBAY GAS COMPANY LIMITED BOMBAY GAS COMPANY LIMITED Vs. BOMBAY GAS COMPANY LIMITED :ITS WORKMEN:BOMBAY GAS COMPANY LIMITED

JUDGEMENT

(1.) THE Judgment of the court was delivered by

(2.) THESE three appeals by special leave arise from the same award of the industrial tribunal, Bombay, and we shall dispose them of by one Judgment. Appeals Nos. 185 and 186 are by the Bombay Gas Co. Ltd. (hereinafter called the Company) while Appeal No. 187 is by the workmen of the Company (hereinafter called the workmen). There was a dispute between the Company and its workmen with respect to bonus for the year 1956. The dispute was referred to the tribunal by two references. The first reference was with respect to all workmen who were clerical, technical and subordinate staff while the second reference was with respect to workmen other than the above. The two references were dealt with together by the tribunal and it came to the conclusion that the workmen were entitled to bonus for the year 1956 at the rate of one-twenty-fourth of the basic wage for the year. An award was accordingly made in favour of the two sets of workmen.

(3.) THE Company claims income-tax at the rate in force in the year in dispute on Rs. 8.33 lacs while the workmen contend that the Company is only entitled to income-tax on Rs. 6.87 lacs. THE difference is of Rs. 1.46 lacs and the contention of the workmen is that this amount represents the income of the Company from its investments on which income-tax must already have been paid before the same was received by the Company. THEre is no evidence on this point on the record and in the circumstances it is not possible to decide the matter. But we shall proceed on the assumption that the workmen's case is correct and income-tax at the relevant rate should be calculated on an income of Rs. 6.87 lacs. THE amount of income-tax would thus come to Rs. 3.47 lacs. As to wealthtax, the contention of the workmen is that' it should not be allowed as it is not an item in the full bench formula. It must, <PG>1167</PG> however, be remembered that there was no wealth-tax when the full bench formula was evolved and there is no reason why, when there is wealth-tax, that should not be allowed on the same ground as incometax. THE Company will therefore be entitled to a deduction of Rs. 0.32 lacs on account of wealth-tax.