Income Tax Law / 1

Case Study Manual Series

-

CHAPTER 1

BASIC CONCEPTS

with
this course on tax law. The Unit begins
a

Chapter 1 is the introductory unit for and

discussion on the tax structure, levy
discussion on the concept of 'tax'. Herein a with
the students are acquainted
collection of taxes in India is initiated. In this Unit, between
tax law. A distinction is drawn
the basic tenets and principles of Income
direct and indirect taxes.
different kinds of levy viz. tax, cess, fee etc. and between
definitions of 'assessee,
to familiarize the students with the
An attempt would be
'previous year,
'income, 'assessment year, 'assessment' and 'agriculture
person,
income as provided under the Income Tax Act,
1961.

I. ATA GLANCE
and Indirect Tax
0.1 Types of Taxes and Distinction between Direct
0.2 Definitions-Section 2
0.2.1 Assessee [Section 2(7)]
0.2.2 Person [Section 2(31)]
0.2.3 Income [Section 2(24)1
Commsr. of Income Tax v. Shaw, Wallace and Co.

(1932) 34 Bom.LR 1033

Commsr. of Income Tax v. The Panbari Tea Co. Ltd.
AIR 1965 SC 1871
Commsr. of Income Tax v. G. R. Karthikeyan
AlR 1993 SC 1671

0.2.4 Assessment Year [Sections 2(9)]

0.2.5 Previous Year [Section 2(34) read with Section 3]

0.2.6 Assessment [Section 2(8)]

0.3 Capital Receipt and Revenue Receipt
Commissioner of Income Tax v. Vazir Sultan
AIR 1959 SC 814
Empire Jute Co. Ltd. v. Commsr. of Inconme Tax
AIR 1980 SC 1946.
 Income
Tax Law
Series
-

Manual

2/
Case Study Tax v.
Mdadras
a d r a s Auto Service
Service (P) Ltd
Income
Commsr. of
SCC 404
(1998) 6
by r
0.4
Application
of
Income
and

Commsr. of Income
Diversion

Tax v. Sitaldas
off Income bv
Tirathdas verridingTitles
SC 728
AIR 1961
Fi and Progressive Rate
Taxation
oe
Tax: Proportional
In
Te 0.5 Rates of Income
Income [Section 2(1A)]
0.6
0.6 Agricultural
Syndicate Ltd. v. Commsr of
Brihan Maharashtra Sugar
1947 Bom. 166
Income Taxr AIR
Maddi Venkatsubbayya
ofIncome Tax
v.
Commsr.
AIR 1951 Mad 1007
Bacha F. Guzdar v. Commsr. of Tncome Tax, Bombay
AIR 1955 SC 74
Commsr. of Income Tax v. Benoy Kumar Sahas Roy
AIR 1957 SC 768
K. Lakshmanan & Co. v. Commsr. of Income Tax
(1999) 239 ITR 597 (SC)
Commsr. of Income Tax v. Soundarya Nursery
(2000) 241 ITR 530 (Mad)

II. DECIDED CASES

Commisioner of Income-tax v. The PanbariTea Co. Lta

AIR 1965 SC 1871*
Subba Rao, J.:
1. By a registered lease deed dated
herein, leased out two tea estates March
s s e e - c o m p a n y , respor
ondent

Estate", along with

named31,"Panbari assessee-compar
1950, theTea Estate" ana in Darrang
hola Tea
ola Te
the State of Assam, tomachinery
n
and buildings owned and Darrang,
and held Dy it, in
held by
a firm
named Messrs. Hiralal Ramdas tor d of year
10 years
of 10
commencing
Rs. 2,25,000 7-
from
January 1, 1950. a Pn
riod
The lease was executed in consideration« sumo
of a

by the lessee to
as and
by way
the
of premium and
lessor. The an annual rent
consi,o00/-
,000/- to
bepaid
to be
be
paid premium was made
orfollows: Rs. 45,000-
to

of Rs. lump sum at the time of the

in one
payable as o alance

1,18,000/- in 16 half
July 31 of each year. The yearly instalmentsexecution of the ledsfore a r y31 a

annual rent of Rs. 11,250/-onor D Janua, ,000/

month
K.
to be
paid on or before theof Rs. 54,000/- payabic akingin all Rs
was
last day of each month,
payable as
fo]lows12000
Subba Rao, J. C. mar**o
Shah, S. M. Sikri,
J.
 Case
Study Manual Series
Income Tax Law / 89
CHAPTER 2
RESIDENTIAL STATUS, CHARGEABILITY
To
chapter2, the students are
der the Income Tax Act,familiarized about the
concept of
1961.
ecope of total income and Forunderstanding the chargeability of income
c for residential status
the
residential status of chargeability of income tax,
the
for
and company will be explained.different kinds of assesseesassesses
i.e.
will be discussed.
covers brief individual, HUF, firm
This Unit also
of income and the
further
justification for a
discussion
segregation of incomes under on the heads
covers taxability salary income.
of such heads. The Unit

I. ATA GLANCE
2.1 Charge of Income Tax (Section 4)
2.2 Scope of Total Income and
ResidentialStatus of an
Assessee (Sections 5-9)
2.2.1 Rules for
Determining ResidentialCommsr.
V.V.R.N.M. SubbayyaChettiarv. Status of an Assessee
(Section 6)
of Income Tax AIR 1951 SC 101
Narottamand Parekh Ltd. v. Commsr.
of Income Tax AIR 1954 Bom. 67
Guiding Principles for determination of Place of Effective
Management(POEM)
Circular No. 06 of
of Company a

4.3
2017
dated 24.01.2017
Income Deemed to Accrue
arise in India (Section 9)
Commsr. of Income Tax v. Eli
and
Lilly
Co.(lndia) Pvt. Ltd. (2009) 312 ITR 225 (SC)
Vodafone Intl. Holdings B.V. v. Union of India
(2012) 6 SCC 613
Formula One World Championship Ltd. v. Commsr.
of Income Tax (2017) 15 SCC 602
24 Income

Section Exempted
me

10, 10AA, from

Tax and Deduction under Income Tax Law
11-13B and Sections 80 C to 80 U)
Filing of returns by political parties/its units at
State or district level in terms of sub-section (45)
Obligation therefor
 Income
Tax Law
Series
Manual
Study 200/8417
79-1T(A-I)I, dated
date ed 22.3.1985
Case No.
90/
Circular
No. 412/F.
of deduction under
deduction under
allowability
on
of technical manpowe r in
C l a r i f i c a t i o n

transfer
on
1 0 A / 1 0 A A

dated 19
Section

TA.I],
industry-
dated 18.07: 2014
software

of
[ F N O . 1 7 8 / 8 4 / 2 0 1 2 - 1 T

case
12/2014
No.
(Section 14)
Circular

Justification
Income
and its
Heads of
1.5

II. DECIDED CASES

Chettiar v.
CommiSSi0ner
of Income-tar
ax
Subbayya
AIR 1951 SC 101*

an appeal
from a judgment of
the High Court of Mad.dras on a
This is
1.
reference J.: toit under Section 66(1), Income-tax Act,
made
Fazl Ali, by the Appellate
to income-tax for the U
connection with the assessment or the appellant
Tribunal in as follows:
referred to the High Court was
1942-43. The question of law
of the case, the assessee (a Hindu
Whether in the circumstances
undivided family) is 'resident'
in British India under Section 4A(b).
Income-tax Act.
follows. The appellant isthe
2. The circumstances of the case may be briefly stated as
karta of a joint Hindu family and has been living in Ceylon with his wife, son and
they are stated to be domiciled in that country. He carries
on
three
daughters, and
business in Colombo under the name and style of the General Trading Corporation
and he owns a house, some immovable property and investments in British Inala
He has als0 shares in two firms situated at Vijayapuram and Nagapatnam n D
the
india. In the
year of account, 1941-42, which is the basis of the present assessme
PPelant is said to have visited British India on seven occasions and thetotal PE
Zd
his
stay
in British India was 101 days. What he did summarz
during this period is
in the udgment of one of the learned Judges of the High Court in these

uring such stays, he personally attended to a litigation relatin5 the

family lands both in the trial Court and in the Court of appeal. He was
also
OT
attending the income-tax proceedings relatinE the assessment

the family income, appearing before the tax authorities

at
Karaikudi and Madras.
On
Income-td he obtained an

extension of time for one of these occasIO thority

payment of the the auth
concerned... tax after interviewL'
iewing
 Case Study Manual Series - Income Tax Law/ 165

CHAPTER 3
HEADS OF INCOME AND RULES OF TAAx

a Holve further into the heads of income; viz. Salary, Income from House
hisU n i t w i l l d e

is Unit f t s and Gains of Business and Profession and Capital gains.

moperty,Profits a n d

cshece heads of income, a discussion would be carried out of the

Under e a c h of
chargeat
ability, deductions available under the said head of income and the judicial
of the s a m e .
nterpretation

I. ATA GLANCE

Tax Treatment to Salary, Perquisites, etc. (Sections 15-17)

21.1 Employer-Employee Relationship
21.2 Basis of Charge
2.1.3 Meaning of Salary
2.1.4 Meaning and Types of Allowances
215 Perquisites
2.1.6 Pension, Provident Fund and Gratuity
Conisr. of Income Tax v. L. W. Russel
AIR1965 SC 49
istice Deaoki Nandan Agarwalav. Union India
of
(1999) 237 ITR 872 (Sc)
rension received by erstwhile officials of United Nations
hether exempt from tax in view of Section 2 of
UN (Privileges and Immunities) Act, 1947
ircular No. 293 [F. No. 200/140/80-IT(A-1)], dated 10-2-1981.
Tax
Teatment to Income from
Sections 22-27) House Property
3.1.1 Chargeability

Annual Value of a
313 Deductions House Property
uuctions from Income from House
S32.4 Deemed Ownership Property
 Income Tax Law
Study Manual Series
-

166/ Case

R. B. JodhanalKuthiala v. Commsr. of Income Tax

AIR 1972 SC 126
Chennai Properties and Investments Ltd. v.Commmsr.

of Income Tax 2015 AIR SCW 3788

RayalaCorpn. (P) Ltd. v.Commsr. of Inconme Tax
(2016) 15 SCC 201
3.3 Profits and Gains of Business and Profession

(Sections 28-44)
3.3.1 Meaning of Business and Profession
Barendra Prasad Royv. ITO
AIR 1981 SC 1047

3.3.2 Chargeability
3.3.3 Expenses Expressly Allowed as Deduction from
Income from Business and Profession
Commsr. of Income Tax v. Sarangpur Cotton
Mfg. Co. Ltd. (2017) 393 ITR 108 (SC)
Commsr. of Income Tax v. Amalgmation Pvt. Ltd.
(1997) AIR SCW 2316
BadridasDaga v. Commissioner of Income Tax
AIR 1958 SC 783
3.4 Capital Gain Taxation (Sections 45-55A
3.4.1 Chargeability of Capital Gains
3.4.2 Capital Assets [Section 2(14)]
Short-term and Long-term assets
Sections 2(42A) and 2(42B)]
Maharaja Rana Hemanth Singhji v. Commsr.
ofIncome Tax[(1976)103 ITR 61 (SC)]
ssue of taxability of surplus on sale of shares and securities
-Capital Gains or Business Income
-

Instructions in order to reduce litigation -reg:"

Circular No.6/2016 dated 29.2.2016
3.4.3 Transfer [Section 2(47)1
Transactions not regarded as transfer
Vania Silks P. Ltd. v.
Commsr.
of Income Tax (1991) 4 SCC 22
Commsr. of Income Tax v.
Grace Collins
AIR 2001 SC 1133
 Case Study Manual Series - Income Tax Law/ 167

Long
Term Capital Assets and Long-Term
3.4.4
[Section 2(29A) and 2(29B)J]
Capital Gain
Value of
Consideration, Cost of Acquisition
45 Full
Cost of Improvement,
Tndexed Cost of Acquisition,
Improvement
Indexed Cost of

II DECIDED CASES

W. Russel
Commissioner ofIncome-tax v. L.
AIR 1965 SC 49*

against the judgment of the

This appeal by special leave preferred of Section
1.SubbaRao, J.: Ernakulam raises the question
of the interpretation
High Court of Kerala at hereinafter called the Act.
Indian Income-tax Act, 1922,
70) ofthe and Scottish Joint

Russet, is a n employee of the English the which

The respondent, L. W. hereinafter called
Society,
scheme for
Ltd., Kozhikode,
L0operative Wholesale Society established
asuperannuation
india,
in England. The Society staff employed in
wasincorporated the Society's
members of were
benefits
E Deneit of the
male European
annuities. The terms of such of the
of deferred European employee
0nand Africa by
means
1934. Every
dated July 27,
employment.
condition of
in a trust deed a for the
Cporated of that scheme as
of
insurance

3ietya shall become

become a m e m b e r to effect
a policy
attaining
the
the trustee has o n his
Under the terms of the scheme
m e m b e r of
the Society The Society
IT
Purpose of e annuity to
every contingency.
Sring
an
of a specified the year
1956-57

of uperannuation or on the
happening
employee.
During respondent.
such the
Contributes 1/3 of the premium payable by payable by taxable
thee Society
Soci contributed Rs. 3,333G3/-
towards the premium amount
in the
The In OCiety included
the said Explanation
1, sub-
ome-tax COfficer, Kozhikode
Circle, 7(1), inclusion

the said inclusion

Section

againstthesaid
under
me ofth
1956-57
me of the for the year
dau respondent
dismissed.
pondent

Clause (v) of the Act. The appeal preferred by the

respondent was
Kozhikode,
the same

the
Income-tax, received
of the
APpellate
Tribunal
Commissioner Act to
The
he further ap Assistant Appellate
66(1) of the dated
appeal preferred to the. Income-tax er
under
Section
its
order

The application By following

High
Court. following

Incom SSessee
thereupon filed an
Dametax Appellate Tribunal for g a
case
to
foment
of c a s e
referring
the
the
 1ax Law
Income
-
Series
Manual CHAPTER 4
C a s e Study

ASSESSMENT
16/

ASSESSMr
FOR
PROCEDURE

AND

the head of her sources.

othor
urces
I N C O M E

under
dise
falling tax
discussing the
the
R E S I D U A L

income
incomes
of
and asSco
the aspect
to
illustrate
procedural return of
andseiz
attempts the refund,

This chapte
chapter on
of losses, izure of the
This Unit primarily
focuses
forward
power
of
search

and carry
Evasion,
The
of set
off for Tax
prosecution
concepts and
penalty
ncome,

tax authorities.

I. ATA GLANCE

56-59)
(Sections
Sources
Income
from Other
4.1
4.1
4.1.1 Chargeability

4.1.2 Dividend Income

Crossword,
from Lottery,
4.1.3 Winnings
and Card Games
Horse Races

Securities
on
4.1.4 Interest
Machinery,
4.1.5 Income
from Letting Out of
Furniture and Buildings
Plant or

Pension in the Hands

of Legal Heirs
4.1.6 Family
Forward of Losses
4.2 Set-off and Carry
(Sections 70-80)

Refund (Sections 237-241) and

Tax Authorities
4.3
4.3
(Sections 116-119)

4.4 Return of Income and Assessment

(Sections 139-154)
4.4.1 Submission of Return of Income

4.4.2 Belated Return

4.4.3 Revised Return
4.4.4 Self-assessment
4.4.5 Scrutiny Assessment
 Case Study Manual Series Income Tax Law/217
-

Protective Assessment
44.6
Best Judgment Assessment
4.4.7

and Prosecution for Tax Evasion

Penalty
5 (Sections 270A-280)

and Seizure (Section 132)

Search
6 Pooran Mal v. Director of Inspection (Investigation)
AIR 1974 SC 348
Bros.
Income Tax Officer v. Seth
(1969)74 ITR 836 (SC)
judgement(s)/order(s)
Giving effect to the Aadhaar-PAN
Court on
of Hon'ble Supreme
for filing return of income-regd.
dated 31.03.2019
Circular No.6/2019

II. DECIDED CASES

(Investigation) of Income-tax
Pooran Mal v.
Director of Inspection
AIR 1974
SC 348*
Article 32 of the
Petitions under
Writ
of them the Delhi High
proceedings
two
from orders passed by
Falekar, J.: 1.In these which appeals
are under Section 132
others of action taken
two in respect
Constitution and
seizure
is claimed of search and
Article 226
relief
called the 'Act') by way
w e r e illegal.
Court under for the search
w
1961
(hereinafter orisation for
I n c o m e - t a x Act,
authorisation the
of the that the grournds. For
o n the
ground and
non-constitutional

ofCertain
certain premises constitutional here the detailed
to give
based on not necessary
The challengee
was
grounds
it
1s these ca
asse
es consistinng
consisting
s articles
articles
that in all
these

that in all and

and
constitutional

Ppreciation of the sufficient to state

also cash, jewellery
It is w r i t Petitions,
Writ etitions,
four
cases.
and in the purporting to
act under
facts of the d o c u m e n t s
authorities

ooks and
s

the
Income-tax

Section 132 read

of the Act.
of acco seized by issued under
were
seizure s u b - s e c t i o n s (1) and
search and
25,
is directed against
tio tutional challenge Rule 112A on the ground
also against
and incidentally
f u n d a m e n t a l rights
guaranteed by
Articles

olative of
the is
grounds challenge
non-constitutional

The accordance
s e i z u r e w e r e not in
Constitution.
the search and
e effect
that considered in the
have to be
This challenge will
le 112.
the individualcases.

P. N. Bhagwati,JJ.
ka,Yv.
Chandrachud, A. Alagiriswami,
 LIST OF CASES
West Bengal AIR 1972 SC 1626. 112
.Tndia Ltd v. Second Industrial Tribunal,
Avery.
..168
Supply v. A. Rajappa AIR 1978 SC
548.
Water
Rangalore
Shramik Parishadv.
BarauniRefinery Pragatisheel
Limited AIR 1990SC 180...
.80
Indian Oil Corporation
Union
Bokajan Cement Corporation Employees
v.
.17
AIR 2004 SC 245...
Cement Corporation of India Ltd. .. 159
AIR 1953 SC 58...
D.N Banerjee v. P.R Mukherjee 307
Excel Wear v. Union of India AIR 1979 SC 75. .256
1996 SC 152..
HAL Employees union v. Presiding Officer AIR
Hari Nandan Prasad v.
7 SCC 190
....293
to Management of Food Corporation of India (2014)
Employer I/R SCC 108..
60
Private Limited v. Dharam Singh (2015) 2
India Yamuna Motors
Cal. 407.
Engineering of W. B. AIR 1968
Works Ltd v. State
Jay ... 283
AIR 1969 SC 90.
Tubes Ltd. v. Workmen
Kalinga 2015 (3) SCJ 512. .256
&Co Ltd v. Employees Union,
Mackinnon Mackenzie 290
1960 SC 893.
Rajamanickam AIR
* * * *

Estate, Kotagiri v.
Management of Kairbetta 257
1253...
electronics AIR 1981 SC
******************°*******

Mohanlal v. Bharat .... 116

Electronics Limited,
AR 2003 SC 145...
Moti Lal v. Bharat .131

Buttev. M/S. E. Merck (1) Ltd.

AIR 182...
L......
2016 SC
Mrs. Rohini K. SC 2210.. o s .. 21
Association v. State West Bengal AIR 2015
of
Workmerm
O.N. G. C. .. 158
2015SC 1 2 7 7 . . .
Coal Labour Union AIR
Petroleum
ONGC Ltd v. v.
Limited, Chandigarh
Reclamation Corporation 256
and
Punjab Land Development 1990 SCC (3) 682..
* * * *

Labour Court, Chandigarh,

Presiding officer, .. 71
Union (2015) 2 SCC 522.
v. Poona Employees 43
R.G. D'Souza

Ruikar v.
AIR 1935 Nag
Emperor.
149 . 256
R. S.
1989 (4)SCC 710..
R. Singh v. Union of India AIR 256
AIR 2016 SC 1855..
Rajkumar v.
directorate
of Education Ltd (2017) 14 SCC
630.158

Kanpur Electricity Supply Company

Gopal Dwivedi
v.
Ram
 AIR 1962 Mad 231.
Rangasuami v. Registrar of Trade Union,
AIR 1936 Cal 57
Re Indian Steam Navigation Workers Union,
Roktas Industries Ltd. v. Rohtas Industries Staff lUnion AIR 1976 SCC 423.

Rohtas Industries Staff Union v. State of Bihar AIR 1963 Pat. 170.. .2
**** 5]
Soiem Erode Electricity Distribution Company Ltd v.
Employees Union AlR 1966 SC 808 . ****************.

Shahadara S. Light Railoay Co v. S.S Railuway Workers Union AIR 1969 SC 513
102
Shri Ramchandra Spinning Mills v. State of Madras (1957) ILLJ 90 Mad
.. ... 278
Standard Chartered Bank v.
Hindustan Engineering and General Mazdoor Union (2001)1 LLJ 1009.
. 3
State ofBombay v. Bombay Hospital Mazdoor Sabha AIR 1976 SC 610..
158
State
ofUP v. Jai Bir Singh (2005) 5 SCC 1. * 229
State of Utar Pradesh v. Jai Bir Singh (2017) 3 SCC 31. ****°°***
.158
Sundrambal v. Govt. of Goa Daman and Dui (1989) 1 LLJ 61 (SC).. .248
Symdicate Bank v. V. K. Umesh Nayak AR 1995 SC 319.
2557

T. K. Rangrajan v. Government of Tamil Nadu AIR 2003 SC1257.

......
.272
Tamil Nadu Non-Gazetted Govt. Officers Union, Madras
v
The Registrar of Trade Union, AIR 1962 Mad
234.
UP Rajya Sahakari Krishi Evanm Gramya Vikas Bank Limited v.
Subhash Chandra Auwasthi (2016) 15 SCC 509.. 256
University of Delhi v. Ram Nath AIR 1963 SC 1873... ***
.220

West India Steel Company Ltd v. Azeez (1990) II LLJ 133 (Ker).. *****o**e.
3

Western India Match Co v. Workmen AIR 1973 SC 2650... ***... O7

Workmenof Dimakuchi Tea Estate v.

Management of Dimakuchi Tea Estate AIR 1958 SC 353... 158
 Series I Stu es and ng
arrangement
f o r

Manual

Study l ig
nagp dustrial disputes. disputes,

industrial
2/
Case
a stop
aS
only
be settling

to of
m e t h o d

p u r p o s e

primary
I. ATA GLANCE
the

India
in
Unionism
Trade
Trade
Dispute
1. Union
and
1962Mad 231
Trade AIR
1.1
1.1 Trade lUnion,
Registrar of The Regi
Rangasoami
v.

Govt. Officers Union,

Madras v.
Madras v. The Registrar o
Non-Gazetted

Tamil Nadu
Trade Union,

Mad 234
AIR 1962
Unions
of Trade
1.2
Registration Cement Corporation of Indi
Union v.
Cement Corporation Employees
Bokajan
Ltd.
245
AIR 2004 SC AIR 2015 SC 2210
Association v. State of West Bengal
Workmen
0. N. G. C.
(s.4)
1.3 Mode of Registration
9, 9A)
1.4 Powers and duties of Registrar (Ss.7,8,
Cal 57
Workers Union, AIR 1936
Re Indian Steam Navigation
& 27)
and Dissolution of Trade Union (Ss.10
Cancellation
1.5
25 & 26)
1.6 Procedure for change of name (Ss.23,
Union (Ss.24, 25 &26)
1.7 Amalgamation of Trade and
Office-bearers
and Duties of
Disqualifications of office-bearers,
Rights
2.
members (Ss. 21A, 20,21 & 22)
Funds of Trade Unions (Ss.15 &16)
2.1 General and Political
(Ss. 17-19)
Criminal immunities of Registered Trade Union
2.2 Civil and

R. S. Ruikar v. Emperor. AIR 1935 Nag 149

Pat. 170
Rohtas Industries StaffUnion v. State of Bihar. AIR 1963
+0
SCC
Rohtas Industries Ltd. v. Rohtas Industries Staff Union AIR 1976
 Jay Case
Engineering Works Ltd Study Manual Series
Standard Chartered v.
State of W. B. AIR
-

Labour Law-I/3
Union Bank v. 1968 Cal. 407
(2001) 1 LLJ 1009 Hindustan
West India Steel Engineering and General Mazdoor
3. Collective Bargaining Company Ltd v. Azeez (1990) II
LLJ 133 (Ker)
India Yamuna Motors
Private Limited v.
R. G. D'Souza v. Dharam Singh
Poona (2015) 2 SCC 108.
Employees Union (2015) 2 SCC 522
II. DECIDED CASES

Rangaswami Registrar of Trade Union

v.

AIR 1962 MADRAS

234*
This is petition under S.11 of the Trade Unions
a
the Registrar of Trade Act seeking to set aside the order of
of the Madras Unions, Madras refusing to register the union of employees
Raj Bhavan as a trade union under the Trade Unions Act XVI of
which for the sake of 1926,
brevity I shall hereafter refer to as the Act.
2. In the Raj Bhavan at
Guindy, a number of persons are employed in various
such as household staff,
peons, chauffer s, tailors, carpenters, maistries,
capacities
sweepers etc. There are also gardeners and maistries employed at the gardeners,
Raj
Ootacamund. Those persons are employed for doing domestic and other services and
Bhavan at
for the maintenance of the Governor's household and to attend to the
needs of the
Governor, the members of his family, staff and State guests. There are two categories
of employees: (1) those whose services are more or less of a domestic
nature. They
number 102. The services of these persons are pensionable and are governed by
certain rules framed by the Governor of Madras; and (2) those who formed part of
the work charge establishment consisting of maistries and gardeners. There are 33
such persons employed at Guindy and 35 at Ootacamund. Their duties consist in
but they would be entitled
maintaining the gardens. Their service is not pensionable
the conditions of their
to gratuity at certain rates. There are separate rules prescribing
Constitution. Both the of categories
service framed under the proviso to Art.309 of the
under the disciplinary control of the Comptroller.
the staff are appointed by and are

service conditions and to facilitate collective

With the object of securing better union called
formed themselves into a

bargainingwith the employer, the employees

Ramachandra Iyer, J.
 dse Study Manual Series - Labo La

CHAPTER-2
STANDING ORDERS

TThis unit attempts to familiarize the students with the concept and nature of standing
rders. The Industrial Employment (Standing Orders) Act, 1946 aims at providing
uniform conditions of service in the form of certified standing orders in respect of the
subiect matters given in Schedule 1 of the Act. The purpose, scope and coverage of the
Act is dealt with in this unit.Itcovers the certification process, procedure to be followed
by the Certifying officer after giving oPportunity of being heard to the employees
and the employers. It is important to state here that the Act becomes automatically
applicable once the industrial establishment engages 100 or more workmen on any day
in a calendar year and the Model Standing Orders automatically become applicable till
the time standing order are not certified. This unit also mentioned about the penalty
that can be imposed on the management if the certified Standing Order has not been
followed. There is also provision for appeal against the order of the certifying authority
and also for seeking modification of the certified standing orders. Any dispute relating
to any ofthe subject matter of the certified standing orders or their interpretation is to
be adjudicated under the Industrial Dispute Act 1947.

I. ATA GLANCE

1 Concept and nature of standing order

Barauni Refinery Pragatisheel Shramik Parishad v. Indian Oil Corporation
Limited AIR 1990 SC 1801

Western India Match Co v. Workmen AIR 1973 SC 2650

1.1
Scope
1946
and coverage of the Industrial Employment (Standing Orders) Act,

Salem Erode Electricity Distribution Company Ltd v. Enmployees Union AIR

1966 SC 808

2 Certification Process (Ss. 3-5)

2.1 Procedure for certification
2.2 Appeals against certification (s.6)
2.3 Condition for Certification (s.4)
80/ Case Study Manual Series Labour Law-I
2.4 Date of operation of Standing orders (s.7)

2.5 Posting of Standing orders (s.9)

Shahadara S. Light Railway Co v. S.S Railway Workers Uni AIR 1969 SC5
Avery India Ltd v. Second Industrial Tribunal, West Bengal AIR 1972 SC
SC 16
3. Interpretation and Enforcement of Standing Orders (s. 13A)
Moti Lal v. Bharat Electronics Limited, AlIR 2003 SC 145
3.1 Modification and Temporary Application of Model Standing Ordersi
12A)
Mrs. Rohini K. Butte v. M/S. E. Merck (D Ltd. AIR 2016 SC 182

3.2 Penalties and Procedure (s.13)

II. DECIDED CASES

Barauni Refinery Pragatisheel Shramik Parishad

v. Indian Oil Corporation Ltd. and others.
AIR 1990 SUPREME COURT 1801*
 Case Study Manual Series Labour Law-I/ 157
CHAPTER-3
RESOLUTION OF INDUSTRIAL DISPUTE

we shall demonstrate to the

that for students
this
In isions of the ID Act, 1947 it is necessary that invoking the applicability
the dispute in
ndustrial dispute arising question should
oft

be
be a activity which is covered by the
in an
definition of
dispute and must lbe raised by a trade union of
indus
industria

f workers
workers workmen or substantial
mber of to relating
employment
a

avment of workmen or person/s in those case the non-employment

or
or terms of

of and the workmen employer

have direct and
is in
position give
a to
substantial interest. Here distinction
dividual dispute' and 'collective dispute and also between
ind
'workman' become
need to be analysed and understood. aimportant
The definition of 'workman under the Industrial
Dispute Act, 1947 is in two parts.
Firstlv, a person must be
employed urnder
contract of service and not under
a
serice. Secondly, he must be employed predominantly
to do one of the works
contact for
to in s.2(s) of the Act, and must not be excluded
referred
by the
excluding
part of the definition
of 'workman. Tests to determine whether the
or of contract for service are: 'due control and
relationship is one of contract
of service
duty test, 'integral part of the business test' supervision
test,' 'predominant nature
and also
is invoked. Further, here the sometimes
the corporate law
principle of "lifting of veil' students will also be introduced
to the different functionaries under the
Act entrusted to
disputes. The mode of settlement of industrial dispute under bring settlement of Industrial
the Act is either through
conciliation failing which by
voluntary arbitration or compulsory adjudication. The
machinery provided under the Act are in the form of works Committees, Conciliation
officer and Board of
Conciliation, Court of Enquiry, Voluntary Arbitration and
compulsory Adjudication machinery i.e. Labour Court, Industrial Tribunal and
National Tribunal.
Ihis unit also covers the powers of
appropriate government under the Act to make
eterence the dispute for compulsory adjudication.
of
Prohibition of Unfair Labour
ractices by
also an area
the employer, Trade Unions and
workman and punishment theretor is
shall be dealt with in this unit.

I. AT A GLANCE
1
Industry, 'Industrial dispute' and
1.1 Industry (s.24j)) 'workman,
D.N
Banerjee v. P.R Mukherjee AlR 1953 SC 58
 v. ombay H0Spital Mazd r
Sabha AlR
State ofBombay
Bangalore Water Supply v.A. Rajappa AIR 1978 SC 548
1976SC6
Delhi v. Ram Nath AIR 1963 SC 1873
Universityof
(2005) 5 SCC1
State ofUPv. Jai Bir Singh
Pradesh v. Jai Bir Singh (2017) 3 SCca311
State ofUttar
1.2 Industrial dispute'
Workmen of Dimakuchi Tea Estate v. Management of Dima
Estao
1958 SC 353
Distinction between contract for s
1.3 Workman (s.2(s)}: ces and
control and supervision test; Predomit
of services: Due
test.
naturei
ofGon Daman and Dui (1989)1 LLI 61 /
A. Sundranmbal v. Govt.

Ram Gopal Dwivedi v. Kanpur Electricity Supply

Company Lt
(2017) 14 SCC 630
14 EmployerIs.2(g)}
2.
Settlement of Industrial dispute

2.1 Works Committee (s.3)

2.2
22 Conciliation Officer/Board of Conciliation (Ss.4 &5)

2.3 Court of Inquiry (s.6)

24 Voluntary Arbitration (s.10A)
2.5 Adjudication: Labour Court (s.7), Tribunal (s.7A),
National Tribunal (s.7B)
3. Powers of the Appropriate Government under the Industrial DiSpa
1947 (s.10)

4. Unfair Labour Practices (s.2ra) read with (s.25T) and (s.250)

ONGC Ltd v. Petroleum Coal Labour Union AIR 2015SC 12
 Labour Law-I
Series -

Manual
256/ Case Study labour practices
unfair labour practices and
workers against
protection
to themselves abrea
to keep themselves abreast of
adequate
enough scope
to the
students

order discuss critically the resul

and
atest
resultant
time giving economic
in the present for achievino
relations law for achieving higher
developments

that need to
be made in
industrial
economie
changes with social
justice.
tempered
growth

I. ATA GLANCE

ts.2(q)}, Types of Strike

Concept of Strike,
legality and justification-
1. AIR 1995 SC 319
Bank v. V. K. Umesh Nayak
Syndicate
AIR 2003 SC1257
T. K. Rangrajan
v.
Government of Tamil Nadu
1989 (4)SCC 710
B. R. Singh v. Union ofIndia AlR
11 Lock-out (s.20)}
AIR 1996 SC 152
HAL Employees union v. Presiding Officer
90 Mad
Shri Ramchandra Spinning Mills v. State ofMadras (1957) ILLJ
Workmen AIR1969 SC90
Tubes Ltd. v.
Kalinga to 25, 26)
lock-out and general prohibition (Ss.22
1.2 Right to strike and
2 Layof (s.2(kkk)}

Difference between lay off and 'lock-oue' 893

Rajamanickam AIR 1960 SC
Kairbetta Estate, Kotagiri v.
Management of
2.1 Retrenchment' {s.2(oo)}
and Reclamation Corporation Limited, Chanangar
Punjab Land Development 1990 SCC (3) 682
Labour Court, Chandigarh,
Presiding officer,
retrenchment (s.25F)
2.2 Conditions precedent for valid
& Co Ltd Employees Union,
2015 (3) SCJ 51
Mackinnon Mackenzie v.

AIR 2016 SC 1855

Rajkumar v. directorate of Education Chandra

ed v.Sub1
Subhash

Vikas Bank Linmited

v.
UP Rajya Sahakari Krishi Evam Gramya
Awasthi (2016) 15 SCC 509
on
Hari Nandan Prasad v. Employer I/R to Management of Food Colp
(2014) 7 SCC 190
 Case Study
Caocial provision Mznual Series
2.3
relatingV-B)
establishments (Chapter to
lay-off, retrer.chment Labour Law-1| 257
and closure in certain
Excel Wear v.
Union of India
AIR 1979 SC
Mohanlal v. Bharat electronics 75
AIR1981 SC 1253
2.4 Disciplinary action and domestic
enquiry
II. DECIDED CASES

Syndicate Bank v. V K. Umesh Nayak

AIR 1995 SC 319*
1 SAWANT, J.:- These appeals have been referred to the Constitution
of the Bench in
view
apparent conflict of opinions expressed in three decisions of this Court a three-
udge Bench decision in Management of Churakulam Tea Estate (P) Lid. v. The Workmen,
-

969) 1 SCR 931: (AIR 1969 SC 998) and a two-Judge Bench decision in
ureaves Ltd. v. Its Workmen, (1978) 3 SCC 155:(AIR 1978 SC 1489) on the one
Crompton
hand,
nd a two-Judge Bench decision in Bank of India v. T. S. Kelazuala, (1990) 4 ScC 744 on
e other.
The question is whether workmen who proceed on strike, whether legal
or illegal,
are entitled to wages for the period
of strike? In the first two caess, viz.
 Case Study Manual Series Human
-

Rights Law/ i

CHAPTER 1
INTRODUCTION OF HUMAN RIGHTS LAW
This chapter introduces the
meaning of human
importance and how human
rights
for students, its nature and
rights integral part of our lives. The observance
are an
of Human Rights has more to do with
rights. The emphasis performance of duties rather than claiming of
of law students thus
shifts from rights to being a human first.
This is explained by the natural law foundations of reason which after a long journey
became natural rights until the term human
rights was coined for it.

I. ATA GLANCE
1. Nature: Meaning andConcept, Kinds (Civil, Political, Economical, Social,
Cultural) and Generations of Human
Rights (First, Second, Third)
2 Origin and Evolution
2.1 Natural Law Contribution to Human
Rights
Greeks: Socrates, Plato, Aristotle
Stoics: Zeno, Cicero
Romans: Jus Civile and Jus Genitum
Christians: St. Augustine, St. Thomas Aquinas
2.2 Contribution to Human Rights during the period of Renaissance and
Reformation
Thomas Hobbes
John Locke
Jean Jacques Rousseau
Immanuel Kant

2.3 Contribution of Marxism to Human Rights

3. Development of Human Rights Regime: Ancient Medieval - -

17th && 18th

Century-19th & 20th Century- Modern Developments

Code of Hammurabi
Magna Carta, 1215
Nikesh Tarachand Shahv. Union of India (2018) 11 SCC 1
State of Punjab v. Dalbir Singh (2012) 3 SCC 346
General (2017) 9 SCC 766
ndira Jaising v. Supreme Court of India, through Secretary
2 / C a s e S t u d y M a r i u a l

1689
Rights,
Bill of
English
A m e r i c a n R e v o l u t i o n

1776
Rights, 1776
Bill of
Virginia
Independence,

Declaration
of
U.S. Constitution 1789
U.S.

1791
of Rights, 347U.S. 483 (1954)
U.S. Bill Topeka
Board of Education of
Brown v.
1789
French Revolution
of Man and
on Rights of Citizen,
Declaration
on Rights
French
Russian Revolution

Treaty of Versailles

International Labour Organisation

League o f Nations

Code (IMT Charter)

Nuremberg 203
(Hernan) and Ors. (1946) 22 IMT
France and ors. v. Göring
Magna Carta, 1215
1689
English Bill of Rights,
u.s. of Independence, 1776
Declaration

u.s. Bill of Rights,

1791
Constitution (1868)
to U.S.
Fourteenth Amendment 1789
Rights ofMan and
on Rights of Citizen,
French Declaration on

II. DECIDED CASES

Nikesh Tarachand Shah v. Union of India

AIR 2017 SC 5500*

R. F. Nariman, J.:
the consti
 Case Study Manual Series - Human Rights Law/ 11

CHAPTER 2
INTERNATIONAL HUMAN RIGHTS LAW
This chapter explains the codification of International Bill of Human
Rights. It wil
facus upon specific Civil, Political, Economic, Social and Cultural Rights
hy these international instruments and its implementation mechanisms. recognized

I. ATA GLANCE
1 UN Charter
1.1 Formation of UN:
Atlantic Charter
Roosevelt's Four Freedom's Speech (1941)
1.2 The Human Rights provisions of Charter:
Preamble, Articles 1(3), 13(1) (b), 55(c), 62(2), 68, 76(c)
2. Charter Based Protection System:
United Nations Human Rights Council
Commission on the Status of Women
Office of the
High Commissioner of Human Rights
Sub-Commission on Prevention and Protection of Minorities
3.
Treaty Based Protection System:
Human Rights Committee
Economic Social and Cultural Rights Committee
Committee against Torture
Committee on the Rights of the Child
Committee against elimination of all forms of Discrimination
against Women
United Nations High Commissioner for Refugees
Committee on the Rights of Persons with Disabilities
A. Charter of United Nations 1945
1 UDHR
Formation of UDHR
Preamble and Article 1
Articles 2-21: Civil& Political Rights
Articles 22-27-
Economic, Social, Cultural Rights
 12/ Case Study Manual Series - Human Rights Law

Concept of Derogable and Non derogable rights

Positive and Negative Rights
B. Universal Declaration of Human
Rights 1948
2. Covenants of 1966

Civil&Political Rights; Economic, Social and Cultural Rights

Rightto Self Determination
Obligations of State
General and Specific Derogability of Rights; Non derogable Rights
Implementation
Contrast between the two Covenants

C International Covenant on Civil and Political Rights 1966

D. International Covenant on Economic, Social and Cultural
Rights t
3. Optional Protocols
E. First Optional Protocol to the International Covenant on
Civil and
Political Rights 1977
F. Second Optional Protocol to the International Covenant on
Civil an
Political Rights, aiming at the abolition of the death
penalty 1989
G Optional Protocol to the International Covenant on Economic, Social and
Cultural Rights 1977
Baboeram et al Surinam, Communication No. 146 of 1983 (HRC)
v.
Irene Bleier Lewenhoff and Rosa Valiño de Bleier v.
No. 30/1978 (HRC)
Uruguay, Communication

II.DECIDED CASES

Baboeram v. Surinam
Communication No. 146 of 1983 (HRC)
1.1. The author of communication No. 146/1983
(initial letter dated 5 July 1oAdh
further letters of 4 November 1983 and 3 January 1985) is Kanta Baboeram-r
a Surinamese
national, at present residing in the Netherlands. mits

communication on behalf of her deceased Sne s at

husband, John Khemraadi Babo
Surinamese lawyer who was
allegedly arrested by Surinamese military au
on 8 December 1982 and whose ecem
corpse was delivered to the mortuary on
1982 showing signs of severe maltreatment and numerous bullet woundS.
 Case Study Manual Series - Human Rights Law/ 25

CHAPTER 3
NATIONAL HUMAN RIGHTS LAW

This chapter examines the human rights and

protection guaranteed under
Indian Legal System and the
jurisprudence on human rights evolved through
various important judgments Bby the Supreme Court of India.

I. ATA GLANCE
1. Constitutional Provisions: Fundamental Rights, Directive Principles of State
Policy, Fundamental Duties and Derogability of Fundamental Rights under
Emergency.
2. Fundamental Rights
Right to Life
Common Cause v. Union of India (2018) 5 SCC 1
Anita Kushwaha v. Pushap Sadan (2016) 8 SCC 509.
Anita Thakur v. Govt.of J& K (2016) 15 SCC 525
K.S. Puttaswamy (Retd.) v. Union
of India (2017) 10 SCCi
Navtej Singh Johar v. Union of India (2018) 1 SCC 791
Shayara Bano v. Union of India (2017) 9 SCC 1
Right to Equality
National Legal Services Authority v. Union of India (2014) 5 SCC 438
Subramanian Swamy v. Director, CBI2014(6) SCALE 146
Hiral P Harsora v. Kusum P Harsora 2016(9) SCALE 776
Nikesh Tarachand Shah v. Union of Irndia (2018) 11 SCC 1
Right to livelihood
Olga Tellis v. Bombay Municipal Corporation AIR 1986 SC 180
Right to freedom of thought, speech and expression
Prakash Jha Productions v. Union of India (2011) 8 SCC 372
N Radhakrishnan @ Radhakrishnan Varenickal v. Union of India 2018(10) SCALE 717

Right to freedom against slavery

Right to education
Kight not to be punished under Ex post facto laws
Union of lndia v. Sukumar AlR 1966 SC 1206
P.V. Mohammad Barmay Sons v. Director of Enforcement AIR 1992 SC 1188
JK. Cotton Spg. & Wug. Mills v. Union of India AlR 1988 SC 191
 Law
Human Rights
Series
-

Manual
Study
26/ Case
Double
Jeopardy
against AIR 1954 SC
375
Right
Venkataraman
v.
Union of India
R i g h t a g a i n s t s e l f - i n c r i m i n a t i o n

263
Karnataka (2010) 7 SCC 1.
Selvi v.
State of AIR 1954 SC 300
Satish Chandra
Sharma v. 1960 SC 756
M.P.
of State Madras AIR
Mohd.Dastagir v.
AIR 1961 SC 29
v. M.P. Mistry
Narayanlal West Bengal AlR 1970 SC
940
v. State of
Ramesh Chandra
arrested persons
Rights of State of U.P. (1994) 4 SCC
260
Joginder Kumar v. 1997 SC 1203
PUCLv. Union ofIndia AIR
trial
Right of speedy
Hussainara Khatoon v. State of Bihar AIR
1979 SC 1360
Common Cause v. Union AIR 1996 SC 1619 of India
P. Ramchandran Rao v. State of Karnataka (2002) 4 SCC 578
Right to bail
Hussainara Khatoon v. State of Bihar AIR 1979 SC 1360

Right relating to handcuffing

Prem Shankar v. Delhi Administration AIR 1980 SC 1535

Right to legal representation

Sheela Barse v. State of Maharashtra AIR 1983 SC 378
.
Constitutional Remedies for violation of Fundamental Rights: Writ
to compensation
Jurisdiction, Rig

Chairman, Railway Board v. Chandrima Das (2000) 2 SCC 465

3. Directive Principles of State Policy
State of Gujarat v.
Mirzapur Moti Kureshi Kassab Jamat 2005 AIR SCW 5723
I.R. Coelho (Dead)
by LRs. v. State of Tamil Nadu (2007) 2 SCC 1
Vellore Citizens Welfare Forum v. Union of India 1996
Municipal Council of Ratlam v. Vardhi Chand AIR 1980(5)SC 1622
647 SCC
Minervn Mills v. Union of India (1980) 3 SCC 625
4.
4. Fundamental Duties and its correlation with
Fundamental Rights
5.
Derogability of Fundamental Rights under Emergency
6. Public Interest Litigation
Vishakha State of Rajasthan
v.
(1997) 6 SCC 241