What is Salary?

Explain its tax treatment

ANSWER-
Income under the head Salaries
1. Salary is defined to include:
a) Wages
b) Annuity
c) Pension
d) Gratuity
e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages
f) Advance of Salary
g) Leave Encashment
h) Annual accretion to the balance of Recognized Provident Fund
i) Transferred balance in Recognized Provident Fund
j) Contribution by Central Government or any other employer to Employees Pension
Account as referred in  80CCD
2 Points to consider:
a) Salary income is chargeable to tax on “due basis” or “receipt basis” whichever is
earlier.
b) Existence of relationship of employer and employee is must between the payer
and payee to tax the income under this head.
c) Income from salary taxable during the year shall consists of following:
i. Salary due from employer (including former employer) to taxpayer during the
previous year, whether paid or not;
ii. Salary paid by employer (including former employer) to taxpayer during the
previous year before it became due;
iii. Arrear of salary paid by the employer (including former employer) to taxpayer
during the previous year, if not charged to tax in any earlier year;
Exceptions – Remuneration, bonus or commission received by a partner from the
firm is not taxable under the head Salaries rather it would be taxable under the head
business or profession.
3 Place of accrual of salary:
a) Salary accrues where the services are rendered even if it is paid outside India;
b) Salary paid by the Foreign Government to his employee serving in India is taxable
under the head Salaries;
c) Leave salary paid abroad in respect of leave earned in India shall be deemed to
accrue or arise in India.
Exceptions – If a Citizen of India render services outside India, and receives salary
from Government of India, it would be taxable as salary deemed to have accrued in
India.
4 Taxability of various components of salary:

S.No. Section Particulars Taxability/Exemption

1. 17 Basic salary Fully taxable

2. 17 Dearness Allowance (referred to as Fully taxable

‘DA’)

3. 17 Bonus, fees or commission Fully taxable

A. Allowances

4. 10(13A) read House rent allowance Least of the following is

with Rule 2A exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house
situated in Mumbai, Calcutta,
Delhi or Chennai)
c) Rent paid minus 10% of
salary
* Salary = Basic + DA (if part of
retirement benefit) + Turnover
based Commission
Note:
i. Fully taxable, if HRA is
received by an employee who
is living in his own house or if
he does not pay any rent
ii. It is mandatory for employee
to report PAN of the landlord to
the employer if rent paid is
more than Rs.
1,00,000 [Circular No. 08
/2013 dated 10-10-2013].

5. 10(14) Children education allowance Up to Rs. 100 per month per

child up to a maximum of 2
children is exempt

6. 10(14) Hostel expenditure allowance Up to Rs. 300 per month per

child up to a maximum of 2
children is exempt

7. 10(14) Transport Allowance granted to an Rs. 3,200 per month granted to

employee to meet expenditure for
the purpose of commuting between
place of residence and place of duty
an employee, who is blind or
deaf and dumb or
orthopedically handicapped
with disability of lower
extremities

8. Sec. 10(14) Allowance granted to an employee Amount of exemption shall be

 working in any transport business to lower of following:
meet his personal expenditure a) 70% of such allowance; or
during his duty performed in the b) Rs. 10,000 per month.
course of running of such transport
from one place to another place
provided employee is not in receipt
of daily allowance.

9. 10(14) Conveyance allowance granted to Exempt to the extent of

meet the expenditure on expenditure incurred for official
conveyance in performance of purposes
duties of an office

10. 10(14) Travelling allowance to meet the Exempt to the extent of

cost of travel on tour or on transfer expenditure incurred for official
purposes

11. 10(14) Daily allowance to meet the Exempt to the extent of

ordinary daily charges incurred by expenditure incurred for official
an employee on account of absence purposes
from his normal place of duty

12. 10(14) Helper/Assistant allowance Exempt to the extent of

expenditure incurred for official
purposes

13. 10(14) Research allowance granted for Exempt to the extent of

encouraging the academic research expenditure incurred for official
and other professional pursuits purposes

14. 10(14) Uniform allowance Exempt to the extent of

expenditure incurred for official
purposes

15. 10(7) Any allowance or perquisite paid or Fully Exempt

allowed by Government to its
employees (an Indian citizen)
posted outside India

16. – Allowances to Judges of High Fully Exempt.

Court/Supreme Court (Subject to
certain conditions)

17. 10(45) Following allowances and Fully Exempt

perquisites given to serving
Chairman/Member of UPSC is
exempt from tax:
a) Value of rent free official
residence
b) Value of conveyance facilities
including transport allowance
c) Sumptuary allowance
d) Leave travel concession

18. – Allowances paid by the UNO to its Fully Exempt

employees
19. Sec. Special compensatory Allowance Amount exempt from tax varies
10(14) read (Hilly Areas) (Subject to certain from Rs. 300 to Rs. 7,000 per
with Rule 2BB conditions and locations) month.

20. Sec. Border area, Remote Locality or Amount exempt from tax varies
10(14) read Disturbed Area or Difficult Area from Rs. 200 to Rs. 1,300 per
with Rule 2BB Allowance (Subject to certain month.
conditions and locations)

21. Sec. Tribal area allowance in (a) Madhya Up to Rs. 200 per month is
10(14) read Pradesh (b) Tamil Nadu (c) Uttar exempt
with Rule 2BB Pradesh (d) Karnataka (e) Tripura
(f) Assam (g) West Bengal (h) Bihar
(i) Orissa

22. Sec. Compensatory Field Area Up to Rs. 2,600 per month is

10(14) read Allowance. If this exemption is exempt
with Rule 2BB taken, employee cannot claim any
exemption in respect of border area
allowance (Subject to certain
conditions and locations)

23. Sec. Compensatory Modified Area Up to Rs. 1,000 per month is

10(14) read Allowance. If this exemption is exempt
with Rule 2BB taken, employee cannot claim any
exemption in respect of border area
allowance (Subject to certain
conditions and locations)

24. Sec. Counter Insurgency Allowance Up to Rs. 3,900 per month is

10(14) read granted to members of Armed exempt
with Rule 2BB Forces operating in areas away
from their permanent locations. If
this exemption is taken, employee
cannot claim any exemption in
respect of border area allowance
(Subject to certain conditions and
locations)

25. Sec. Underground Allowance to Up to Rs. 800 per month is

10(14) read employees working in uncongenial, exempt
with Rule 2BB unnatural climate in underground
mines

26. Sec. High Altitude Allowance granted to a) Up to Rs. 1,060 per month
10(14) read armed forces operating in high (for altitude of 9,000 to 15,000
with Rule 2BB altitude areas (Subject to certain feet) is exempt
conditions and locations) b) Up to Rs. 1,600 per month
(for altitude above 15,000 feet)
is exempt

27. Sec. Highly active field area allowance Up to Rs. 4,200 per month is
10(14) read granted to members of armed exempt
with Rule 2BB forces (Subject to certain conditions
and locations)
Q2. Write a short note on Penalty and Prosecution for Tax Evasion. 
ANSWER 2-
Penalties and Prosecutions
Default in complying with provisions of or with conditions prescribed under the
Income-tax Act would attract certain penalty and in critical cases prosecutions as
well. The document will provide you information about the punishable offences,
prosecutions and the quantum of penalties that can be imposed under the law.
There are three modes built in the fiscal legislation for encouraging tax compliance:
(a) Charge of Interest, (b) imposition of penalty (c) launching of prosecution against
tax delinquents. While charging of interest is compensatory on character, the
imposition of penalty and institution of prosecution proceedings act as strong
deterrents against potential tax delinquents.
What are the defaults which may invite levy of penalty?
Chapters XVII and XXI of Income-tax Act, 1961, contain various provisions
empowering an Income-tax Authority to levy penalty in case of certain defaults. The
following defaults may invite levy of penalty:

(i) When the assessee is in default or is deemed to be in default in making payment

of tax, including the tax deducted at source, advance tax and the self assessment
tax. [Section 221 read with Sec.201(1)
(ii) Failure to pay the advance tax as directed by the Assessing Officer or as
estimated by the assessee. [Section 273(1)]
(iii) Failure to comply with a notice issued under section 142(1) or 143(2) or failure to
comply with the direction issued under section 142(2A) to get the accounts audited.
[Section 271(1)(b)]
(iv) Concealment of particulars of income or furnishing of inaccurate particulars of
income. [Section 271(1)(c)]
(v) Failure to maintain books of accounts and documents by persons carrying on
profession or business as prescribed under section 44AA. [Section 271A]
(vi) Failure to get the accounts audited in prescribed circumstances or failure to
obtain the prescribed audit report within prescribed time period of failure to furnish
the audit report along with the return, as required under section 44AB. [Section
271B]
(vii) Failure to subscribe to the eligible issue of capital [Section 271BB]
(viia) Penalty for failure to deduct tax at source. [Section 271C]
(viii) Accepting of any loan or deposit or repayment of deposit of Rs.20,000 or more
otherwise than by account payee cheque or account payee draft, in contravention of
the provisions of Section 269SS. [Section 271D]
(viiia) Repayment of loan in contravention of the conditions imposed in section 269T.
[Section 271E]
(viiib) A. Failure of file the return of income as required under Section 239 (1), shall
entail imposition of penalty. [Section 271F]
B. Failure to file the return as required under the proviso to Section 139(1), in the
event of assessee fulfilling the prescribed conditions, i.e., certain persons in
occupation of immovable property or owner of motor vehicle or subscriber to
telephone, one who incurred expenditure on foreign travel, the holder of the credit
card or a member of a club, subject to specific conditions, are required to file the
return as per proviso to Section 139(1), failing which penalty may be imposed.
(Proviso to Section 271F)
(ix) Refusal to answer in contravention of legal obligation. [Section 272A(1)(a)]
(x) Refusal to sign any statement made in the course of income-tax proceedings.
[Section 272A(1)(b)]
(xi) Failure to attend or give evidence or produce books of accounts and documents
in compliance with the requirements of summons under section 131(1). [Section
272A(1)(c)]
(xii) Failure to comply with the provisions of section 139A dealing with the application
for and allotment of Permanent Account Number or General Index Register
Number. [Section 272A(1)(d)]
(xiii) Failure to furnish information regarding securities. [Section 272A(2)(a)]
(xiv) Failure to give notice of discontinuance of business or profession. [Section
272A(2)(b)]
(xv) Failure to furnish in due time information sought under section 133 of Income-
tax Act. [Section 272A(2)(c)]
(xvi) Failure to furnish in due time prescribed returns/statements. [Section 272A(2)
(c)]
(xvii) Failure to allow inspection or take copies of registers of registers of companies.
[Section 272A(2)(d)]
(xviii) Failure to furnish in due time the return of income by charitable or religious
institutions. [Section 272A(2)(e)]
(xix) Failure to deliver in due time a copy of declaration of non-deduction of tax at
source u/s.197A. [Section 272A(2)(f)]
(xx) Failure to furnish a certificate of tax deducted at source to the person on whose
behalf tax has been deducted or collected as required by Section 203 or Section
206C. [Section 272A(2)(g)]
(xxi) Failure to deduct and pay tax from salary payable to an employee as directed
by the Assessing Officer or the Tax Recovery Officer as required by Section 226(2).
[Section 272A(2)(h)]
(xxii) Failure to allow an Income-tax Authority to collect any information useful or
relevant to the purposes of Income-tax Act u/s.133B. [Section 272AA)]
(xxiii) Failure to comply with the provisions of section 203a dealing with tax
Deduction Account Number [Section 272BB]
Is the levy of penalty automatic?
No penalty under the Income-tax Act is imposed unless the person concerned has
been given reasonable opportunity of being heard.
What is the minimum and maximum penalty leviable?
The quantum of penalty leviable depends upon the nature of default. The relevant
section of Income-tax Act prescribe the minimum and maximum penalties which can
be levied.
Can the penalty be reduced or waived?
The Commissioner of Income-tax may reduce or waive the amount of any penalty
imposed or imposable, if prescribed conditions are satisfied. The assessee should
voluntarily and in good faith make full and true disclosure of income prior to the
detection of concealment by the Assessing Officer. In certain cases of genuine
hardship, the penalty levied can be reduced/waived if the assessee has co-operated
in any enquiry relating to the assessment and recovery of taxes. The
waiver/reduction of penalties is discretionary and dependent upon satisfaction or
prescribed conditions. No assessee can, a matter of right, claim waiver or reduction
of penalty imposed or imposable upon him. [Section 273A]
Office and prosecution under the income tax act. why is prosecution
necessary?
In the fight against tax evasion, the imposition of monetary penalty alone is not
sufficient. A calculating tax evader finds it profitable to evade tax for years, if he
knows that he may get away with it by paying penalty in the year in which he is
caught. However, the prospect of landing in jail is a far more dreaded consequence
and works as a deterrent. Further, for more serious defaults, sometimes launching of
prosecution is prescribed without prescribing monetary penalties.
The Parliament has, therefore, been enacting deterrent laws for effective
implementation of tax laws. The Income-tax Act contains a separate chapter XXII
wherein offences have been defined and punishment provided.
What are the offences punishable under the income tax act?
The following offences committed by a person are punishable:
(i) Removal, parting with or otherwise dealing with books of accounts, documents,
money, bullion, jewellery or other valuable article or thing put under restraint during
the search. [Section 275A]
(ii) Fraudulent removal, concealment, transfer or delivery of any property or any
interest in the property with the intention to thwart recovery of tax. [Section 276]
(iii) Failure on the part of a liquidator or receiver of a company to give notice of his
appointment to the Assessing Officer or failure to set apart amount notified by the
Assessing Officer, or parting away of company’s properties in contravention of
income-tax provision. [Section 276A]
(iv) Failure to enter into written agreement or failure to furnish the statement of
immovable property intended to be transferred u/s.269UC, or failure to surrender or
deliver the property u/s.269UE, purchased by the Appropriate Authority or doing or
omitting to do anything u/s.269UL, which will have the effect of transfer of property
without the permission of the Appropriate Authority (under the provisions of Chapter
XX-C) [Section 276AB]
(v) Failure to pay to the credit of the Central Government the tax deducted at source.
[Section 276B]
(va) Failure to pay the tax collected at source. [Section 276BB]
(vi) Willful attempt to evade any tax, penalty or interest [Section 276C(1)]
(vii) Willful attempt to evade the payment of any tax, penalty or interest levied under
Income Tax Act. [Section 276C(2)]
(viii) Willful failure to furnish in due time return of income. [Section 276CC)]
(viiia) Failure to furnish return of income in Search Cases as required under section
158BC [Section 276CCC]
(ix) Willful failure to produce accounts and documents as directed by issue of notice
under section 142(1) [Section 276D]
(x) Willful failure to get the accounts audited as directed by the Assessing Officer
under section 142(2A). [Section 276D]
(xi) Making of a statement in verification or delivery of an account or statement which
is false and which the concerned person knows or believes to be false or does not
believe to be true. [Section 277]
(xii) Abetting or inducing another person to make and deliver an account or
statement or declaration relating to any taxable income which is false and which he
either knows or believes to be false. [Section 278]
(xiii) Punishment for 2nd & subsequent offences in cases of certain defaults. [Section
278A]
(xiv) No person shall be punished for any failure if he proves that there is reasonable
cause failure. [Section 278AA].
Q3. Write a short note on Settlement of Industrial Dispute.
ANSWER 3-
Awards and Settlement:
The Industrial Dispute Act, 1947 which extends to the whole of India came into operation on
the first day of April 1947. As per Preamble of the said Act, it is enacted to make a provision
for the investigation and settlement of the dispute and certain other purposes such as
recovery of money from the employer in terms of Settlement or Award by making an
application to the appropriate government. The purpose and aim of the Industrial Disputes
Act 1947 is to minimize the conflict between labour and management and to ensure, as far
as possible, Economic and Social Justice. The act has made comprehensive provisions both
for this settlement of disputes and prevention of disputes in certain Industries.

Method of settlement of Industrial Dispute-

In the interests of the industry in particular and the national economy in general, cordial
relations between the employer and employees should be maintained. To ensure cordial
labour management relations and to achieve industrial harmony, the following methods of
settlement of industrial disputes are provided under the Act -

Collective Bargaining - Collective Bargaining or Negotiation is one of the methods for

settlement of an industrial dispute. It plays significant role in promoting labour
management relations and in ensuring industrial harmony

Collective Bargaining is a process/Method by which problems of wages and conditions of

employment are settled amicably, peacefully and voluntarily between labour and
management. In collective bargaining, the parties to the dispute I.e., the employer and the
employees/workmen settle their disputes by mutual discussions and agreements without
the intervention of a third party. Such settlements are called "bipartite settlement".
Therefore, settlement of labour disputes by direct Negotiation or settlement through
collective bargaining is always preferable as it is the best way for the betterment of labour
disputes. Collective Bargaining is recognized as a right of social importance and greater
emphasis is placed on it by India's five year plans. The term 'Collective Bargaining' was
coined for the first time by Sidney and Webb in their famous book 'Industrial Democracy'
published in 1897. It means

Negotiation between an employer and group of workers to reach agreement on working

conditions. N. W. Chamberlain (in his 'Source Book on Labour: 1958 p. 327) described
collective bargaining as "the process whereby management and Union agree on the terms
under which workers shall perform their duties". In simple word, collective bargaining
means "Bargaining between an employer or group of employers and a bonafide Labour
Union".

2) Conciliation -Conciliation is a process, by which a third party persuades the parties to the
industrial dispute to come to an amicable settlement. Such third party is called 'Conciliation
Officer' of Board of Conciliation. Sections 4 and 5 of the act provide for the appointment of
Conciliation Officer and the constitution of the Board of Conciliation respectively.

3) Voluntarily Arbitration - The expression 'Arbitration' simply means "the settlement or

determination of a dispute outside the court". Parties to the dispute, without going to the
Court of law, may refer the dispute/Matter to a person in whom they have faith, to suggest
an amicable solution. Such person, who acts as a mediator between the disputants to settle
the dispute is called "Arbitrator". The decision given by the parties, which is binding on the
parties, is called "Award". Therefore Arbitration is a judicial process under which one or
more outsiders render a binding decision based on the merits of the dispute. Section 10-A
of the industrial dispute act, 1947 confers on parties, power to enter into Arbitration
agreement. The agreement must be in prescribed form and must specify the name/names
of the arbitrator or arbitrators.

4) Adjudication -When an industrial dispute could not be settle either through bipartite
negotiations or through the Conciliation machinery or through the voluntary Arbitration, the
final stage resorted to, for settlement of an industrial dispute is Adjudication or compulsory
Adjudication, which envisages Governmental reference to statutory bodies such as Labour
Court or Industrial Tribunal or National Tribunal. Section 7, 7-A and 7-B of the Industrial
disputes Act, 1947 provide for the constitution of Labour Court, Industrial Tribunal and
Labour Tribunal respectively.

What is award?
The judgment of an arbitrator is called his Award. Award (Judgement) of Arbitrators under
section 10A is an Award.

Definition of Award
Section 2(b) of the Industrial Dispute Act, 1947 defines Award as follows - According to
Section 2(b) of the Industrial Disputes Act, 1947 ‘Award’ means an interim or a final
determination of any Industrial Dispute or of any question relating thereto by any Labour
Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration award
made under section 10A.

Ingredients of Award - To constitute Award under Section 2(b) of the Industrial Dispute Act,
1947 the following ingredients are to be satisfied-
(a) An Award is an interim or final determination of an industrial dispute.
(b) It is an Interim or final determination of any question relating to such dispute.
(c) Such interim or final determination is made by any Labour Court, Industrial Tribunal or
National Industrial Tribunal.
(d) Award (Judgement) of Arbitrators under section 10A is an award.

What is Settlement?
According to Section 2 (p) of the Industrial Dispute Act, 1947 “Settlement” means a
settlement arrived at in the course of conciliation proceeding and includes a written
agreement between the employer and workmen arrived at otherwise than in the course of
conciliation proceeding where such agreement has been signed by the parties thereto in
such manner as may be prescribed and a copy thereof has been sent to an officer
authorised in this behalf by the appropriate Government and the conciliation officer.

Procedure for Settlement of Industrial Disputes

The Industrial Disputes Act, 1947 provides procedure for settlement of industrial disputes,
which must be followed in all “public utility service”, has been defined in section 2 (n) of the
Act so as to include “any railway, postal, telegraph or telephone service that supplies power,
water and light to the public, any system of public conservancy or sanitation, any section of
an industrial establishment on the working of which the safety of the establishment or the
workmen employed therein depend and any industry which keeping in view the public
emergency has been declared as such by the appropriate Government”. As laid down in the
Act a dispute should first go through the process of conciliation before it could be referred
to the appropriate authorities for adjudication33. Where any industrial dispute exists or is
apprehended, the Conciliation Officer may or where the dispute relates to a public utility
service and a notice under Section 22 has been given shall hold conciliation proceedings in
prescribed manner.
Conciliation proceedings can be stated in case of dispute that actually exists or when there
is reasonable ground to apprehend that an industrial dispute is likely to come into existence
unless something is done to prevent or where both parties to dispute approach the
Government separately for conciliation. Conciliation proceedings are deemed to have been
started from the date on which a notice issued to the parties to appear before the
conciliation officer who may meet them jointly or separately.

The Conciliation Officer must submit his report to the Government within fourteen days of
the starting of conciliation proceedings. During this period he tries to bring about a fair and
amicable settlement between the parties to dispute. If a settlement arrived at, the
Conciliation Officers will send a report to the Government along with a memorandum of
settlement duly signed by both parties. This settlement come into force from the date
agreed upon by the parties to dispute or in its absence the date on which it was signed by
them and is binding for a period of six months unless agreed upon otherwise, and after the
period afore said, until expiry of two months from the date on which a notice in waiting of
the intention to terminate the settlement is given by one of the parties to the other party or
parities to the settlement. Such a settlement is binding on all parties to the industrial
dispute, to the employer, his heirs, successors or assignees and to the workmen employed
in the establishment on the date of the dispute and all the persons who subsequently
become employed therein. If no settlement is reached by the parties, the conciliation officer
will submit his report to the appropriate Government stating the reasons for which he
thinks no settlement could be arrived at as well as the facts of the case.

Q4. What are the jurisdictional considerations under the E commerce

scenario? 
ANSWER-4
E-commerce means a commercial activity between various entities through
electronic media, such as Internet.  Thus, the term “E-commerce” is
synonymous with “Electronic Commerce.”  As the technology development
continues, it brings more & more challenges to the lawmakers to regulate the
commerce. In India, in the year 2000, as computers & electronic networking
started taking more part in people’s daily lives, the lawmakers in India
enacted “Information Technology Act, 2000” to regulate the activities of the
people using electronic media. With time, the computer applications and
software systems improved and made it simpler even for a common man to
get on the Internet and start trading through it. This created e-marketplaces
around the globe.

The Internet brought sellers and buyers from around the world to transact
with each other.  The various payment gateways came along and helped
manage the monetary part of such transactions, while operating from a
totally different nation. Now, the development in Block-chain technology has
introduced electronic currency such as Bitcoin, Ethereum and likewise, which
have been introduced by a few traders as acceptable currencies.  These
electronic currencies are not regulated by any government, and are based on
the concept of unregularised free-commerce. 
Such is now the complexity of the commercial activities which are becoming
increasingly acceptable and happening to the point where these are eating
into the brick and mortar traditional businesses. Examples, such as Amazon,
Flipkart, Bigbasket, and many many more are the cause of many traditional
shops and superstores to shut down.  This e-commerce is also a big
challenge for the government to levy various taxes such as GST or VAT etc. 
Additionally, when a local business is shut down and is replaced by an e-
commerce vendor, it causes loss of revenue to the local jurisdiction and thus
lowers the income of the government.

For such reasons as described above, the lawmakers need to evolve the law
for basically two reasons. Firstly, to regularise the trade and secondly, to
ensure that the tax collections from the trading activities are well-maintained
for the governments. But, then comes the main hurdle for the lawmakers,
that is to deal with the jurisdiction of the law which they want to enact,
especially considering the situation when the trade is happening cross-
border.

The E-commerce also includes, in addition to buying and selling, activities

such as payments, deliveries, supply-chain and management & availability of
services which are highly dependent on computer servers, hosting websites,
availability of utilities such as electricity and so many other things.

When the vendors and purchasers are both in India, it becomes a much
simplified task for the enforcers of the law to control such trade.  This is so,
because all the laws enacted within India are applicable to such e-commerce.
The regularisation of e-commerce though not impossible can be complicated
and costly. The reason being is that the true identities of the buyers as well
as sellers cannot be determined.  This affects the reach of criminal law and
contract law in case any minor is involved.  

Contents
The courts of law primarily have to deal with territorial and pecuniary
jurisdictions. Related to e-commerce dispute, deciding territorial jurisdiction
gets more complicated, mainly because when it comes to the Internet, there
are no borders between the countries.

Provisions of Indian law

The websites registered in India to conduct e-commerce are governed by all
Indian laws, such as Information Technology Act, 2000; Consumer Protection
Act, 1986; Code of Civil Procedure, 1908; and Indian Contract Act, 1872.  If
there is any criminality involved in the e-commerce which is defined under
Indian Penal Code, 1860 or violation of the intellectual property laws such as
The Copyright Act, 1957 or The Patents Act, 1970, then the such can be
dealt appropriately by summoning the identity of the either party in the
dispute.  The rules formed under IT Act, 2000 define that the e-commerce
websites operating in India are intermediaries, and therefore need to do due
diligence pertaining to the cyber law.

Information Technology Act, 2000 and E-

commerce
The preamble of this Act states, 

“An Act to provide legal recognition for transactions carried out by means of
electronic data interchange and other means of electronic communication,
commonly referred to as “electronic commerce”, which involve the use of
alternatives to paper-based methods of communication and storage of
information, to facilitate electronic filing of documents with the Government
agencies and further to amend the Indian Penal Code, the Indian Evidence
Act, 1872, the Bankers’ Books Evidence Act, 1891 and the Reserve Bank of
India Act, 1934 and for matters connected therewith or incidental thereto.”

Illustration:  If a person residing in UK commits a fraud through a e-

commerce website then this person can be prosecuted in India under the
Information Technology Act, 2000. 

Indian Penal Code, 1860 and E-commerce

A person who commits an offense using E-commerce can also be charged
under Indian Penal Code, 1860 and will be prosecuted according to the
Criminal Procedure Code, 1973.  If the accused is identified and is residing
abroad, then Letter Rogatory can be issued u/s 166A of CrPC, and the
accused can be extradited after due process. 

Illustration:  A person residing in Singapore commits from Singapore an

offense u/s 420 of IPC through a website, then such person can be charged
under this Code and can be extradited to stand trial using Letter Rogatory.

Code of Civil Procedure, 1908 and E-commerce

To avail civil remedy as prescribed in the Code of Civil Procedure (CPC), a
plaintiff at his own discretion can approach the local civil court invoking its
jurisdiction and sue the defendant claiming damages as a compensation for
his loss occurred due to commission/omission of the defendant when such
act is purported through a website, and no matter where the defendant is
residing. The notices can be duly served as long as the identity of the
defendant can be established.

Illustration:  A company in the USA sells a software through its website to an

Indian company, but the software has undisclosed deficiencies and thus
there is a failure of the system used by the Indian company; then the Indian
company has a discretion to sue this American company either in India under
its local jurisdiction or sue the defendant in the USA.

Q5. Write a short note on Penalties and Procedure under Industrial

Employment (Standing Orders) Act, 1946. 
ANSWER-5)

Introduction
The concept of ‘Standing Orders’ is one of the recent growth in relation to
Indian labour- management. Prior to 1946, there existed chaotic conditions
of employment, wherein the workmen were engaged on an individual basis
with uncertain and vague terms of employment. The Act was enacted as a
simple measure to remedy this situation – by bringing about uniformity in
the terms of employment in industrial establishments so as to minimize
industrial conflicts.

The Preamble of the Act imposes a compulsion upon the employers, “to
define with sufficient precision the conditions of employment” and make the
same known to the workmen.

Application of the Act

Section 1 of the Act provides that the Act shall apply to the industrial
establishments (within India) with an engagement of more than a hundred
workmen at present or as noted on any day in the preceding year unless
provided by the appropriate Government for application to any such
industrial establishment – with less than a hundred employees.

Exclusion of certain industrial establishments

Certain industrial establishments have been excluded from its application via
various statutory provisions enlisted in this Act:
  Section 1(4) excludes those establishments to which Chapter VII of
the BIRA or MPIESOA applies unless controlled by the Central
Government.
 Section 13-B excludes those establishments whose workmen are
subject to the Fundamental & Supplementary Rules; various Civil
Services Rules; or any other rules provided by the ‘appropriate
Government’.
 The provisions of Sections 10 and 12-A(1) do not apply to the
establishments under the control of the States of
Gujarat/Maharashtra.

Power to exempt: Section 14

Section 14 empowers the appropriate Government to exempt any industrial
establishment from being subject to all or any of the provisions of this Act,
either conditionally/unconditionally.

Special features of the Act

The Act envisages three important features, they are:

 Concept of Standing Orders;

 Adjudicatory powers of the Certifying Officer; and
 CSOs (short for – Certified Standing Orders) to have the force of
law.

Whether a contract can override in the certified Standing

Orders?
CSOs cannot be deemed as a statutory concept, but can also not be confined
to the individualistic notions of a contract, as they transcend its limits.
Hence, standing orders effectuated in compliance with the statutory
provisions may be considered as a special kind of contract or a ‘statutory
contract’. 

Herein, to answer the question of whether a contract can override in the

CSO, it can be concurred from the Western India case,  that “the employer &
workmen cannot enter into a contract overriding the statutory contract as
embodied in the CSO, except when such a contract is entered into in
compliance with Section 10(1), so as to modify such CSO, but not
otherwise.”
Q6. What are the kinds of Human Rights? Elaborate. 
ANSWER-6
What Kinds of Human Rights Exist?
Human rights are inherent to all humans, regardless of their nationality, race, gender,
religion, language, or sexual orientation. The concept of human rights may not be
new, but it’s gone through significant changes over time. In the past, only the rights
of privileged groups of people were respected. In 1948, the newly-formed United
Nations General Assembly adopted the Universal Declaration of Human Rights
(UDHR). This codified the necessity of human rights for all. International law,
national constitutions, and other conventions support and expand on the UDHR.
What kinds of human rights exist?
Theoretical categorizations
Some theories help us understand where the concept of current-day human rights
comes from. “Natural rights” are a very old philosophical concept. Related to natural
law, natural rights refer to rights that are universal and inalienable. They are not
related to any government or culture. By being human, a person is entitled to their
natural rights. That’s where we get the concept of universal human rights.
Another example of human rights categorization is the distinction between positive
rights and negative rights. The state must provide access to positive rights, like food,
housing, education, and healthcare. Negative rights refers to the freedom from
certain things, like slavery, torture, and suppression. It’s the state’s role to ensure
these violations do not occur. In the “three generations” framework of human rights
law, which has most impacted Europe, negative rights are first generation, while
positive rights are part of the second and third generations.

Economic, social, and cultural rights

The UDHR and other documents lay out five kinds of human rights: economic,
social, cultural, civil, and political. Economic, social, and cultural rights include the
right to work, the right to food and water, the right to housing, and the right to
education. Documents like the International Covenant on Economic, Social, and
Cultural Rights, which was established in 1976, protect these rights. Conventions like
the Convention on the Rights of the Child safeguard the economic, social, and
cultural rights of specific groups. As with all types of human rights, the state’s
responsibility is to protect, promote, and implement economic, social, and cultural
rights. Specific examples in this category include:
 The right to work in a safe environment for a fair wage
 The right to access medical care, including mental health care
 The right to accessible education
 The right to adequate food, clothing, and housing
 The right to affordable sanitation and clean water
 The right to take part in cultural life
 The right to enjoy the benefits of scientific progress
 The right to social security
Civil and political rights
Civil and political rights include articles from the first part of the Universal Declaration
of Human Rights. They state that people must be allowed to participate freely in civil
and political life without facing repression or discrimination. While economic, social,
and cultural rights are framed as rights a person is entitled to, most civil and political
rights are about protection from certain things, like torture and slavery. Documents
like the International Covenant on Civil and Political Rights and its two Optional
Protocols outline rights such as:
 The right to life, which is violated by actions like death by torture, neglect, and
use of force
 The right to freedom of expression, which is violated by restricting access to
ideas and limiting press freedom
 The right to privacy, which is violated by intruding on a person’s sexual life or
personal data
 The right to asylum, which is violated by deporting someone to a country where
their lives are at risk
 The right to a fair trial and due process, which is violated by a court that’s not
impartial and excessive delays
 The right to freedom of religion, which is violated when someone is punished for
following their beliefs or forced to adopt another religion
 The right to freedom from discrimination, which is violated when traits like race,
gender, religion, etc are used as justification for actions like being fired from a
job.
Human rights: what will the future look like?
In the decades since the UDHR, the scope of human rights has not changed
significantly. Should the scope be modified? The UDHR, the International
Covenants, and other documents serve as the cornerstones of human rights, but
human rights should not be limited to documents. The world is changing due to
technology, climate change, and scientific developments. Are the entities responsible
for defining and protecting human rights keeping up? It isn’t necessary to completely
tear down our old understanding of human rights. Instead, society should be open to
refining what kinds of human rights there are and how they apply practically.

Q7. What is NHRC? Explain its composition.  

ANSWER-7)

The National Human Rights Commission (NHRC) of India was established on 12 October,
1993. The statute under which it is established is the Protection of Human Rights Act (PHRA),
1993 as amended by the Protection of Human Rights (Amendment) Act, 2006.
It is in conformity with the Paris Principles, adopted at the first international workshop on
national institutions for the promotion and protection of human rights held in Paris in
October 1991, and endorsed by the General Assembly of the United Nations by its
Regulations 48/134 of 20 December, 1993.
The NHRC is an embodiment of India’s concern for the promotion and protection of human
rights.
Section 2(1)(d) of the PHRA defines Human Rights as the rights relating to life, liberty,
equality and dignity of the individual guaranteed by the Constitution or embodied in the
International Covenants and enforceable by courts in India.

Composition of Commission
S.No. Name Designation

1 Shri Justice Arun Kumar Mishra Chairperson

2 Shri Justice Mahesh Mittal Kumar Member

3 Smt. Jyotika Kalra Member

4 Dr. Dnyaneshwar Manohar Mulay Member

5 Shri Rajiv Jain Member

6 Mr. Iqbal Singh Lalpura, Chairperson, National Commission for Ex-officio Member
Minorities

7 Shri Shri Vijay Sampla, Chairperson, National Commission for Ex-officio Member
Scheduled Castes

8 Shri Harsh Chouhan , Chairperson, National Commission for Ex-officio Member

Scheduled Tribes

9 Ms. Rekha Sharma, Chairperson, National Commission for Women Ex-officio Member

10 Shri Priyank Kanoongo, Chairperson, National Commission for Special Invitee to Statut
Protection of Child Rights Commission

11 Dr. Bhagwan Lal Sahni,Chairperson, National Commission for Ex-officio Member

Backward Classes

12 Chief Commissioner for Persons with Disabilities Ex-officio Member

Q8. What is the procedure of certification of Standing Orders? 

ANSWER-8)\
The procedure for certification of Standing Order, as prescribed under
Section 5 of the Act, is threefold:

 The Certifying Officer to send a copy of the Draft Standing Order to

the workmen or trade union, along with a notice calling for
objections, that shall be submitted to him within 15 days of
receiving such notice.
 Upon receipt of such objections, the employer and workmen to be
given an opportunity of being heard, after which the Certifying
Officer shall decide and pass an order for modification of the
Standing Order.
 Finally, the Certifying Officer shall certify such Standing Order, and
thereby, within seven days, send a copy of it annexed with his order
for modification passed under Section 5(2).

Appeals: Section 6
Any related party aggrieved by the order of the Certifying Officer may appeal
to the ‘appellate authority’ within 30 days, provided that its decision, of
confirming such Standing Order or amending it, shall be final. The appellate
authority shall thereafter send copies of the Standing Order, if amended, to
the related parties within seven days.

Modification of Standing Order: Section 10

A CSO cannot be modified, except on agreement between the related parties,
until six months from the last modification or operation of such standing
order under Section 7. Further, subject to Section 10(1) and other provisions
of this Act, the parties may apply to the Certifying Officer for modifications in
the standing order by annexing five copies of the proposal or a certified copy
of the agreement for modifications.

Payment of Subsistence Allowance: Section 10-A

Section 10-A of the Act stipulates for the payment of subsistence allowance
by the employer to a workman who is suspended, pending the investigation/
inquiry of his misconduct, at the rate of 50% for the first 90 days, and 75%
for the remaining period if the delay is not attributable to the workman. The
Act also allows an appeal to the Labour Court constituted under IDA-1947 in
case of a dispute relating to such subsistence allowance, whose decision shall
be final. Moreover, it declares that the provisions applicable to a particular
State, if more beneficial, shall prevail over this Section.

Temporary Application of Model Standing Orders: Section 12-

A
Section 12-A provides that in spite of the provisions under Section 3 – 12, in
the period between the applicability of this Act and operation of the CSO,
MSOs to be adopted, with Sections 9, 13(2), and 13-A applying in the same
way as would apply to a CSO. it also declares that if there exist two
categories of workmen, and the daily rated have a CSO in existence for
them, then the MSO be adopted for the monthly rated workmen.

Q9. What is the evidentiary value of e-contracts? 

ANS 9
All electronic contracts are valid contracts as they are legalized by the Information
Technology Act and one could be made liable if there is any infringement with the terms and
conditions. Subsequently many amendments have been made in order to attain conceptual
clarity.

Q10. Explain the development of Human Rights Regime. 

ANSWER 10
 On December 10, 1948, the Universal Declaration of Human Rights (UDHR) was adopted by
the 56 members of the United Nations. The vote was unanimous, although eight nations
chose to abstain.
[29] It contains 30 Articles. The rights enshrined under it includes equality for all (Art. 1), Life,
liberty and security (Art. 3), prohibition of inhuman treatment (Art. 5) and arbitrary arrest
(Art. 9), fair and public hearing (Art. 10), right to privacy (Art. 12), asylum (Art. 14), marry (Art.
16), own property (Art. 17), social security (Art. 22), rest and leisure (Art. 24), a standard of
living adequate for the health and well-being of himself and of his family (Art. 25), education
(Art. 26), participation in cultural life (Art. 27), and freedom of movement and residence (Art.
13), thought, conscience and religion (Art. 18), opinion and expression (Art. 19), peaceful
assembly and association (Art. 20) and presumption of innocence until guilt is proved (Art.
11)