BOOK BOND EMPLOYEES UNION Vs. UNION OF INDIA

JUDGEMENT

(1.) This application has been heard in full, we are, therefore, disposing of this application finally at the admission stage itself.

(2.) The petitioner is a Union of the Employees of Brook Bond Company through its General Secretary, Respondent No. 1 is Union of India and respondent No. 2 is Commissioner of Income Tax, Patna, Respondent Nos. 3 and 4 are the Brook Bond India Ltd. and its Regional Accounts Officer, Patna. The Union has moved this Court for a direction to the respondents to refrain from adding dearness allowance paid to the members of the Union assessment under the Income Tax Act and for a direction to Commissioner, Income Tax to refund the Income -tax already deducted from their salary on account of the Income tax payable by the members of the Union.

(3.) The stand of the petitioner -Union is that dearness allowance paid or payable to the members of the Union cannot be included in the total income of the assesses members and, therefore, the deduction in the behalf was illegal The stand of the petitioner is that the dearness allowance is not income and therefore, it cannot form part of the taxable income because dearness allowance is paid only to off -set erosion in wages. It is, therefore, not salary. Not being salary it is not income taxable to income tax.