R B D D DATAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS matter arises on a statement of the case by the Tribunal, under S. 66(1) of the IT Act.

(2.) THE assessee joined the "All India Reporter"in 1923, when the journal was the proprietary concern of Shri Chitaley. This concern was turned into a limited company in 1924. The assessee continued as director -in -charge of the All India Reporter. In the year 1942, he was getting a salary of Rs. 1950 per month. There was an agreement on 23rd March, 1943, between the assessee and the All India Reporter. The agreement is in the following terms: - "Agreement entered into this 23rd March 1943, between the All India Reporter Ltd., a company registered under the Indian Companies Act, 1913, through its Managing Director Mr. V. V. Chitaley (hereinafter referred to as the"company") of the one part and Mr. D. D. Datar of Nagpur (hereinafter referred to as"the employee") of the other part. Whereas Mr. D. D. Datar has put in very valuable services in the company since its inception in promoting, building up its business and bringing it in repute which it enjoys, and is still continuing to serve the company. It is in appreciation therefore hereby agreed that :

(3.) IT would appear that on 2nd Nov., 1945, the All India Reporter terminated the services of the assessee with his consent, and made him a payment of Rs. 85,000 -0 -0. The assessee passed the following receipt in favour of the All India Reporter : -