COMMISSIONER OF INCOME TAX Vs. K K ROY

JUDGEMENT

(1.) THIS is a reference under s. 66(1) of the Indian IT Act.

(2.) THE assessment year involved is the year 1954-55, corresponding to the financial year 1953-54, which is the accounting year.

(3.) ANTICIPATING the impact of the Act on the service of the assessee, the board of directors of Airways (India) Ltd. made a recommendation, on 30th Jan., 1953, for payment of Rs. 50,000 to the assessee, in view of the termination of his association with the company, under the impending scheme of nationalisation. The recommendation was adopted by the company, which passed a resolution, on 28th Feb., 1953, couched in the following language :