SWASTI CASHEW INDUSTRIES PRIVATE LTD Vs. INDUSTRIAL TRIBUNAL

JUDGEMENT

(1.) The Swasti Cashew Industries (Private), Ltd., which is the petitioner, has prayed for the quashing of the award made by the industrial tribunal in Mysore, Bangalore, in Industrial Dispute No. 34 of 1960. That award has been published in the Mysore Gazette dated 11 January 1962. By that award, the industrial tribunal has directed the payment of a bonus at the rate of 5 per cent of the annual earnings of each workman in the two factories of the petitioner at Mangalore, the workers being represented by the Cashewnut Workers' Union, Mangalore, which is respondent 2(a) and the Dakshina Kannada Gerubija Shramika Sangha which is respondent 2(b). The award made by the tribunal is attacked by the petitioner's counsel on the following grounds :

(2.) According to the tribunal, the net profits come to Rs. 50,096-8-5 (adding back a sum of Rs. 37,293 on account of debit items disallowed). The incometax payable on this sum of Rs. 50,096-8-5 will be according to the petitioner, Rs. 25,674-7-0. The tribunal calculated at Re. 0-7-0 in the rupee of the net profits (of Rs. 12,803-3-5) towards incometax and the total on that account came to Rs. 5,600 as set out in Para. 29 of the award. It may be mentioned that the tribunal has not given deduction even to this sum of Rs. 5,600. The contention of Sri T. Krishna Rao is that the incometax payable is to be calculated on the notional profits and not on the net profits as shown in the balance sheet. It is also contended that, according to the decisions of the Supreme Court, the deductible amount relating to incometax is to be calculated on the notional profits, such amount being notional incometax and not incometax actually assessed. It is urged that this omission to allow deduction relating to incometax is also an error apparent on the face of the record.

(3.) Before proceeding further, there is one argument on behalf of the petitioner which should be adverted to. In the previous Writ Petition No. 227 of 1959, there were certain observations made by the High Court, in regard to the paid-up share capital of Rs. 5,00,000. Those observations have been referred to in Paras. 20 and 21 of the present award. It was sought to be contended on behalf of the petitioner that the said observations amount to a finding to the effect that the return has to be calculated on the amount of Rs. 5,00,000 and that, therefore, it was not open to the tribunal to make a distribution of the same between the factories at Mangalore on the one hand and the factory at Quilon on the other. A similar contention had been advanced before the tribunal. But the tribunal took the view that the question had not been covered by the decision of the High Court. In taking that view, the tribunal has stated as follows at Para. 21 of the award :