Dismissing the appeal of the revenue the Court held that Central Government approved a non-budgetary support scheme for this company with view of rehabilitating employees. Said monetary-benefits under special package scheme given to employees of Government company would be in nature of retrenchment compensation though it was styled as VRS. Entitle for exemption.
CIT (TDS) v. Hindustan Photo Film Workers Welfare Centre (CITU) (2021) 282 Taxman 186/ 207 DTR 253/ 323 CTR 707 /(2022)441 ITR 661 (Mad.)(HC) Editorial : Order of single judge was affirmed, Hindustan Photo Film Workers `Welfare Centre (CITU) (2017) 249 Taxman 204 /151 DTR 185 / (2018) 400 ITR 299 (Mad.)(HC)
S. 10(10C) : Public sector companies-Voluntary retirement scheme-Compensation-Not liable to deduct tax at source-Winding up of Government company-Rehabilitating its employees, monetary benefits under special package scheme-Entitle for exemption. [S. 10(10B), 192, Art. 226]