SHRIYANS PRASAD JAIN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal is preferred against the judgment and order of the Settlement Commission (Income-tax and Wealth-tax), New Delhi, disposing of the application filed by the appellant with certain directions. The matter pertains to the Assessment Year 1950-51.

(2.) The appellant, Shriyans Prasad Jain (since deceased) was appointed as the Officerin-Charge of Bombay office of the Dalmia Cement and Paper Marketing Company Limited (DCPM) by an order dated 11-10-1943. His salary was fixed at Rs. 4,000/- per month - free of Income-tax. According to the appellant, the order of appointment further stipulated that the period of employment shall be 25 years and that in case his services are terminated before the expiry of the said period, he shall be paid compensation at the rate of Rs. 40,000/ - per annum for the unexpired period. The revenue, of course, disputes the aforesaid stipulations relating to period of service and the provision for compensation in case of premature termination.

(3.) Through a letter dated February 14, 1950, the services of the appellant were terminated with effect from November 30, 1949. An amount of Rs. 7 lacs was paid to the appellant on that occasion.