Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: empanelment :: ACCOUNTING STANDARD :: form 3cd
 
 
« News Headlines »
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions
  Mentioning of Minor Head Code for accounting of Refund
 Mentioning of Minor Head Code for accounting of Refund

Britannia drags I-T dept to court
August, 06th 2007
Britannia Industries (BIL), the countrys top biscuit maker, has taken the income tax department, Kolkata, to court after it received a showcause notice asking it to explain the withdrawal of funds from the employees pension fund in 2003.
 
The notice was issued in June 2007 to the trustees of Britannia Industries Limited Covenanted Staff Pension Fund asking why action should not be taken against the fund as the assessment for 2003-04 reveals a deficit of Rs 12.12 crore.
 
The biscuit firm, which is registered in Kolkata, has responded by filing a writ against the department in the Kolkata High Court.
 
The departments action comes after, the Britannia Industries Pensioners Welfare Association, an association of retired employees of the company, moved the Calcutta High Court on June 11 against Britannia, seeking to restore the withdrawn funds back to the fund.
 
The pension cheques of the employees have stopped coming since April 1, 2003, hence this reaction, said Subir Datta, secretary of the association.
 
Aruna Bhatia, the commissioner of income tax, Kolkata III, said: This is an official matter and I dont want to comment on it. Britannia executives did not comment on the issue saying the matter is sub-judice. In their complaint to the income tax department and to the Company Law Board, the pensioners alleged that the trustees of the fund have withdrawn funds that violate the Indian Trust Act, 1882 and the Supreme Court guidelines on pension fund withdrawal. The companys trustees have also not taken any prior approval from the income tax department to withdraw funds, the pensioners said.
 
This is not the first time the controversial withdrawal of funds from Britannias pensioners kitty in 2004 has reached the courts. Earlier, four members of the association moved the Madras High Court against the non-payment of pension to them, including illegal withdrawal. The pensioners argue that, according to the Supreme Court ruling, the pension is a deferred salary and not an ex-gratia payment (that is, a payment made as a favour rather than an obligation). Quoting the Supreme Court judgement, the pensioners said the pension does not depend on the pension fund but was a liability taken up by the company.
 
Datta says Britannia has not only stopped the payment of pensions to its former employees but has also stopped the tri-annual pension increase to the pensioners with effect from April 1, 2004. This, the pensioners say, violates the terms of service conditions and the salary revision letters, dated April 1, 1992, sent to all managers and officers as approved by the board.
 
The pensioners have also filed a complaint against C C Choksi, the chartered accountants of the pension fund, that advised the trustees to withdraw the funds, with the Institute of Chartered Accountants of India (ICAI).
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions