No TDS on Workmen Compensation as Package Was Linked to Industry Closure

CIT (TDS) Vs Hindustan Photo Film Workers (Madras High Court) The appeals before the Madras High Court arose from orders passed in a batch of writ petitions concerning deduction of tax at source (TDS) on amounts paid or payable to workmen following the closure of an industry. The central issue was whether the payments made under a scheme styled as a Voluntary Retirement Scheme (VRS) were taxable under Section 10(10C) of the Income Tax Act or exempt under the second proviso to Section 10(10B). The Court noted that winding-up proceedings had been initiated and that an earlier order had character...