- (1.) This is an appeal by special leave in an industrial matter. There was a dispute between the appellant and its workmen as to bonus for the year 1954-55. This dispute was referred by the Government of Mysore under the Industrial Disputes Act, 1947) to a tribunal for adjudication. A number of objections were raised by the appellant before the tribunal; but we are not concerned with them, as the law with respect of profit bonus has been settled by this Court in the Associated Cement Companies Ltd. v. Its workmen, 1959 1 LLJ 644 . The only points urged on behalf of the appellant by the learned Attorney-General are with respect to the amount of income-tax, return on working capital and provision for rehabilitation in connection with the calculations made by the tribunal. We shall therefore confine ourselves to the three points which have been raised before us on behalf of the appellant.
(2.) The tribunal allowed Rs. 1.67 lacs for income-tax. The contention of the appellant is that this is incorrect in view of the decision of this Court in the Associated Cement Companies Ltd, 1959 1 LLJ 644 . It appears that the gross profits of the appellant were Rs. 9.46 lacs, while the full statutory depreciation allowed to the appellant for the year in dispute was Rs. 4.30 lacs. Thus income-tax should have been deducted on the sum of Rs. 5.16 lacs at seven annas in the rupee, which was the rate prevalent in the relevant year. This amount comes to Rs. 2.25 lacks. The contention of the appellant in this behalf is in our opinion correct and the calculation made by the tribunal will have to be modified accordingly.
(3.) The next question is about return on working capital. The dispute is both as to the rate of return and the amount on which its should be allowed. The tribunal has allowed three per cent on working capital. The appellant contends that the tribunal should have allowed four per cent. As was pointed out in the Associated Cement Companies case, 1959 1 LLJ 644 the rate allowed by tribunals or working capital is between two to four per cent. In the present case the tribunal has allowed three per cent. We do not think that there is any reason for us to interfere with the discretion of the tribunal in this matter though it is true that the recent trend of tribunals is to allow four per cent return on working capital.;