DELHI CLOTH AND GENERAL MILLS COMPANY LIMITED Vs. WORKMEN

JUDGEMENT

(1.) THE only point of dispute between the parties to this appeal by special leave from an order of an Industrial Tribunal relates to the quantum of direct taxes deductible under S. 6 of the Payment of Bonus Act, 1965.

(2.) THE appellant is a public limited company owning and running various industrial units situate at different places in India. THEse are engaged in the manufacture of different kinds of articles such as cotton textiles, artificial silk fabrics, sugar, industrial alcohol, vanaspati, chemicals, fertiliser, polyvinyl chloride and rayon tyrecord etc. Two of these units i.e. THE Delhi Cloth Mills and the Swatantra Bharat Mills are cotton textile mills each registered as a factory under the Factories Act. THE award under appeal relates to these two mills alone. THE appellant prepares and publishes one consolidated balance sheet and profit and loss account of the company showing the final results of the working of all the units for its shareholders. It had however for many years past, prepared and maintained separate balance sheets and profit and loss accounts for some of its units individually and some grouped together. Although separate balance sheets and profit and loss accounts were prepared for each of these two mills (hereinafter referred to as D. C. M. and S. B. M. for abbreviation) their workmen have always been paid bonus calculated on the basis of pooled profits of the two units treating them as one unit. This is borne out by the award of the Tribunal in paragraph 29.

(3.) THE method and basis of casting balance-sheets will not be unilaterally altered or changed.