NATIONAL FEDERATION OF INSURANCE Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS Writ Petition has been filed by National Federation of Insurance Field Workers of India (Cuttack Divisional Association) an all India Association of the Development Officers. The officers' are working in the Office of the Life Insurance Corporation of India (hereinafter called 'LICI') and they challenge through their association inter alia, the action of LICI in making deduction of tax at source from the amount of payment made to Development Officers of LICI on account of Conveyance Allowance (hereinafter referred to as 'CA') and Additional Conveyance Allowance (hereinafter referred to as 'ACA'). The prayer is to quash Annexures 4, 5 and 6 of the Writ Petition.

(2.) IN this matter, when the Writ Petition was filed, a Division Bench of this Court, by an interim Order Dated 15.01.2004, directed that there shall be no deduction in respect of CA and ACA paid to the Development Officers (hereinafter referred to as 'DOs') of LICI and as a result of the said order, deduction has been stopped by the LICI. But a subsequent order No. 10 dated 30.1.2006 passed in Misc. Case No. 915 of 2006 the stay order was vacated.

(3.) VIRTUALLY , on the said prayer of the LICI the matter was taken up for final hearing and was heard.