TMI Blog2021 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... - HELD THAT:- Though the learned counsel appearing for the appellant seek to contend that the case on hand would come under Section 10(10C) of the Income Tax Act, in which case, the amount quantified is only the Voluntary Retirement payment, we do not subscribe to the said view expressed. Incidentally, the learned counsel appearing for the appellant submitted that if it is a case under first proviso to Section 10(10B) of the Income Tax Act, there is a cap with respect to the amount quantified - ₹ 50,000/-. This will only militate against the members of the first respondent. The said contention also, in our considered view, cannot be countenanced. As rightly submitted by the learned Senior Counsel appearing for the first respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in W.P.No.18566 of 2015 etc., dated 17.03.2017. 2. We do not wish to travel much on the facts involved. Suffice it to state that the issue involved in these appeals is with respect to the deduction of TDS on the amount paid and payable to the workmen being the members of the first respondent. The workmen were made entitled for certain payment consequent upon the closure of the Industry. Winding up proceedings were initiated before this Court and an order was accordingly passed by the learned Single Judge in C.P.No.114 of 2003, wherein, it has been held that the payment due to the workmen is a special package though styled as Voluntary Retirement Scheme. Paragraph 14 of the order of the learned Single Judge in C.P.No.114 of 2003 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the amount which is to be paid to the workmen by way of VRS Scheme. It is brought to the notice of the Company Court that deduction of TDS it appears that it may be run up to 4 crores. Learned Senior Standing Counsel for the Income Tax Department, then representing before the Company Court informed that if a representation is given by one of the workmen through their Union the same would be placed before the Central Board of Direct Taxes in this regard for necessary consideration. Since already the learned Standing Counsel for the Income Tax Department has offered a scheme to place the matter before the Central Board of Direct Taxes as to the deduction of the amount at source by way of TDS to the tune of 4 Crores once again delaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id view expressed. Incidentally, the learned counsel appearing for the appellant submitted that if it is a case under first proviso to Section 10(10B) of the Income Tax Act, there is a cap with respect to the amount quantified - ₹ 50,000/-. This will only militate against the members of the first respondent. 8. The said contention also, in our considered view, cannot be countenanced. As rightly submitted by the learned Senior Counsel appearing for the first respondent, it is a case of the first respondent/writ petitioner that the case would fall under the second proviso. 9. The learned Single Judge has considered this issue in extenso in paragraphs 31 and 32, which are extracted hereunder:- 31. As mentioned above, the Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply in respect of any compensation received by a workmen in accordance with any scheme, which the Government may, having regard to the need for extending the special protection to the workmen in the undertaking to which such scheme applies and other relevant circumstances, approve in its behalf. The compensation which is received by the workmen would fall within the definition of compensation found in explanation to Section 10(10B). 32. In such circumstances, this Court has no hesitation to hold that the package having been received by the workmen as compensation pursuant to the decision taken by the Central Government to offer special protection to the employees of HPF, the same stands exempted from deduction to income tax. 10. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consequently, connected miscellaneous petitions are closed. 14. At this juncture, learned senior counsel appearing for the first respondent brought to our notice that during the pendency of the proceedings before the learned single Judge, an order was passed directing the appellant to deposit certain amount in the name of Registrar General, High Court, Madras. This amount certainly will have to go to the members of the first respondent. In such view of the matter, Registry is directed to release the said amount so as to enable the members of the first respondent to get the benefits as the aforesaid arrangement is only interim in nature and we are disposing of the main appeals themselves, confirming the orders of the learned single Judge. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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