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Industrial Disputes: Definition,

Forms and Types

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Industrial Disputes: Definition, Forms and Types!

Concept of industrial disputes:
In common parlance, dispute means difference or disagreement of strife
over some issues between the parties. As regards industrial dispute, since
its settlement proceeds as per the legal provisions contained in the
Industrial Disputes Act, 1947, hence it seems pertinent to study the
concept of industrial disputes from a legalistic angle.

According to Section 2 (k) of the Industrial Disputes Act, 1947, the term
industrial dispute means any dispute or difference between employers
and employers or between employers and workmen, or between workmen
and workmen, which is connected with the employment or non-
employment or the terms of employment and conditions of employment of
any person.

The above definition is too broad and includes differences even between
groups of workmen and employers engaged in an industry. However, in
practice, industrial disputes mainly relate to the difference between the
workmen and the employers.


Dispute differs from discipline and grievance. While discipline and

grievance focus on individuals, dispute focuses on collectivity of individuals.
In other words, the test of industrial dispute is that the interest of all or
majority of workmen is involved in it.

The following principles judge the nature of an industrial dispute:

1. The dispute must affect a large number of workmen who have a
community of interest and the rights of these workmen must be affected as
a class.

2. The dispute must be taken up either by the industry union or by a

substantial number of workmen.


3. The grievance turns from individual complaint into a general complaint.

4. There must be some nexus between the union and the dispute.

5. According to Section 2A of the Industrial Disputes Act, 1947, a workman

has a right to raise an industrial dispute with regard to termination,
discharge, dismissal, or retrenchment of his or her service, even though no
other workman or any trade union of workman or any trade union of
workmen raises it or is a party to the dispute.

Forms of Industrial Disputes:

The industrial disputes are manifested in the following forms:

Strikes: Strike is the most important form of industrial disputes. A strike is a

spontaneous and concerted withdrawal of labour from production. The
Industrial Disputes Act, 1947 defines a strike as suspension or cessation
of work by a group of persons employed in any industry, acting in combi-
nation or a concerted refusal or a refusal under a common understanding
of any number of persons who are or have been so employed to continue
to work or accept employment.

According to Patterson Strikes constitute militant and organised protest

against existing industrial relations. They are symptoms of industrial unrest
in the same way that boils symptoms of disordered system.

Depending on the purpose, Mamoria et. al. have classified strikes into two
types: primary strikes and secondary strikes.

(i) Primary Strikes:

These strikes are generally aimed against the employers with whom the
dispute exists. They may include the form of a stay-away strike, stay-in, sit-
down, pen-down or tools- down, go-slow and work-to-rule, token or protest
strike, cat-call strike, picketing or boycott.

(ii) Secondary Strikes:

These strikes are also called the sympathy strikes. In this form of strike,
the pressure is applied not against the employer with whom the workmen
have a dispute, but against the third person who has good trade relations
with the employer.


However, these relations are severed and the employer incurs losses. This
form of strike is popular in the USA but not in India. The reason being, in
India, the third person is not believed to have any locus standi so far the
dispute between workers and employer is concerned.
General and political strikes and bandhs come under the category of
other strikes:
Lock-out is the counter-part of strikes. While a strike is an organised or
concerted withdrawal of the supply of labour, lock-out is withholding
demand for it. Lock-out is the weapon available to the employer to shut-
down the place of work till the workers agree to resume work on the
conditions laid down by the employer. The Industrial Disputes Act, 1947
defined lock-out as the temporary shutting down or closing of a place of
business by the employer.

Lock-out is common in educational institutions also like a University. If the

University authority finds it impossible to resolve the dispute raised by the
students, it decides to close-down (or say, lockout) the University till the
students agree to resume to their studies on the conditions laid down by
the University authority. Recall, your own University might also have
declared closure sometimes for indefinite period on the eve of some
unrest / dispute erupted in the campus.

Gherao means to surround. It is a physical blockade of managers by
encirclement aimed at preventing the egress and ingress from and to a
particular office or place. This can happen outside the organisational
premises too. The managers / persons who are gheraoed are not allowed
to move for a long time.

Sometimes, the blockade or confinements are cruel and inhuman like

confinement in a small place without light or fans and for long periods
without food and water. The persons confined are humiliated with abuses
and are not allowed even to answer calls of nature.
The object of gherao is to compel the gheraoed persons to accept the
workers demands without recourse to the machinery provided by law. The
National Commission on Labour has refused to accept gherao as a form of
industrial protest on the ground that it tends to inflict physical duress (as
against economic press) on the persons gheraoed and endangers not only
industrial harmony but also creates problems of law and order.

Workmen found guilty of wrongfully restraining any person or wrongfully

confining him during a gherao are guilty under Section 339 or 340 of the
Indian Panel Code of having committed a cognizable offence for which they
would be liable to be arrested without warrant and punishable with simple
imprisonment for a term which may be extended to one month or with a fine
up to Rs. 500, or with both.

Gherao is a common feature even in educational institutions. You might

have seen in your own University officers sometimes gheraoed by the
employees / students to compel the officers to submit to their demands.
Here is one such real case of gherao.

Gherao of the vice chancellor:

The non-teaching employees of a Central University in the North-East India
had some demands with the University authority for quite some time. Non-
confirmation of some of the employees even after completion of six years
service was one of the main demands. That the Vice Chancellor was to
resign on 31st October was known to all in the University.

As the last pressure tactic, the employees started Vice Chancellors gherao
on 31st October at 11.00 a.m. They shut down the entrance gate of the
administrative building at 3.00 p.m. to block the egress and ingress from
and to the office in the administrative building.
The Vice Chancellor was kept confined in his office chamber. He was
humiliated throughout the gherao by using abuses, disconnecting his
telephone line, not allowing him food and water and even not allowing him
to answer calls of nature. This scene lasted for 18 hours and was over
only by 5 a.m. next day when some 50 C.R.P.F jawans with local police
came from the city which is about 20 kms. away from the University

They broke the entrance gate of administrative building, rescued the Vice
Chancellor and arrested 117 employees confining the Vice Chancellor
under Section 340 of the Indian Penal Code and kept them behind bars for
a day.

On 1st November, the Vice Chancellor handed over the charge of his office
to the senior most Professor of the University at his residence in the city. In
the wee hours on 2nd November, he left for where he came from. The
aftermath of gherao created a tuneful atmosphere in the University Campus
for about two weeks.

Picketing and Boycott:

Picketing is a method designed to request workers to withdraw cooperation
to the employer. In picketing, workers through display signs, banners and
play-cards drew the attention of the public that there is a dispute between
workers and employer.

Workers prevent their colleagues from entering the place of work and
pursuade them to join the strike. For this, some of the union workers are
posted at the factory gate to pursuade others not to enter the premises but
to join the strike.
Boycott, on the other hand, aims at disrupting the normal functioning of the
organisation. The striking workers appeal to others for voluntary withdrawal
of co-operation with the employer. Instances of boycotting classes and
examinations are seen in the Universities also.

Types of Industrial Disputes:

The ILO has classified the industrial disputes into two main types.

They are:
1. Interest Disputes

2. Grievance or Right Disputes.

They are discussed one by one:

1. Interest Disputes:
These disputes are also called economic disputes. Such types of disputes
arise out of terms and conditions of employment either out of the claims
made by the employees or offers given by the employers. Such demands
or offers are generally made with a view to arrive at a collective agreement.
Examples of interest disputes are lay-offs, claims for wages and bonus, job
security, fringe benefits, etc.

2. Grievance or Right Disputes:

As the name itself suggests, grievance or right disputes arise out of
application or interpretation of existing agreements or contracts between
the employees and the management. They relate either to individual worker
or a group of workers in the same group.

Thats way in some countries; such disputes are also called individual
disputes. Payment of wages and other fringe benefits, working time, over-
time, seniority, promotion, demotion, dismissal, discipline, transfer, etc. are
the examples of grievance or right disputes.

If these grievances are not settled as per the procedure laid down for this
purpose, these then result in embitterment of the working relationship and a
climate for industrial strife and unrest. Such grievances are often settled
through laid down standard procedures like the provisions of the collective
agreement, employment contract, works rule or law, or customs /usage in
this regard. Besides, Labour Courts or Tribunals also adjudicate over
grievance or interest disputes.

Generally, industrial disputes are considered as dysfunctional and

unhealthy. These are manifested in the forms of strikes and lock-outs, loss
of production and property, sufferings to workers and consumers and so on.
But, sometimes industrial disputes are beneficial as well.

It is the dispute mainly which opens up the minds of employers who then
provide better working conditions and emoluments to the workers. At times,
disputes bring out the causes to the knowledge of the public where their
opinion helps resolve them.
ndian 2000-rupee note
From Wikipedia, the free encyclopedia

Two thousand rupees


Value 2000

Width 166 mm

Height 66 mm

Years of printing November 2016 Current


Design Mahatma Gandhi

Design date 2016


Design Mangalyaan

Design date 2016

The Indian 2000-rupee banknote (2000) is a denomination of the Indian rupee. It was
released by the Reserve Bank of India (RBI) on 8 November 2016 after the demonetisation of
500 and 1000 banknotes and is in circulation since 10 November 2016.[1] It is a part of
the Mahatma Gandhi New Series of banknotes with a completely new design.
The Indian 2000 rupee note is the highest denomination of currency note printed by RBI that is
in active circulation, ever since the 10,000 rupee note was demonetised in January 1978.[2][3]
Before the official announcement by RBI, media reported that 2000 notes have been printed
from the currency printing press in Mysuru by the end of October 2016.[5]



o 1.1Security features

o 1.2Languages


o 2.1GPS Chip

o 2.2Spelling error

o 2.3Colour Bleeding


4See also


The 2000 banknote of the Mahatma Gandhi New Series is 66 166 mm magenta coloured,
with the obverse side featuring a portrait of Mahatma Gandhi as well as the Ashoka Pillar
Emblem, with a signature of Reserve Bank of India Governor. It has the Braille feature to assist
the visually challenged in identifying the currency. The reverse side features a motif of
the Mangalyaan, depicting the India's first interplanetary space mission and the logo and a tag
line of Swachh Bharat Abhiyan.[1]

Security features[edit]

The 2000 banknote has multiple security features, listed below: [1]

See through register with denominational numeral 2000

Latent image with denominational numeral 2000

Micro letters RBI and 2000 on the left side of the banknote

Windowed security thread with inscriptions , RBI and 2000 on banknotes with
colour shift. Colour of the thread changes from green to blue when the note is tilted
Guarantee Clause, Governors signature with Promise Clause and RBI emblem towards

Denominational numeral with Rupee Symbol, 2000 in colour changing ink (green to
blue) on bottom right

Ashoka Pillar emblem on the right Mahatma Gandhi portrait and electrotype (2000)

Number panel with numerals growing from small to big on the top left side and bottom
right side.

For visually impaired Intaglio (raised printing) of Mahatma Gandhi portrait, Ashoka Pillar
emblem, bleed lines and identity mark

Horizontal rectangle with 2000 in raised print on the right

Seven angular bleed lines on left and right side in raised print (obverse)

Year of printing of the note on the left (reverse)


As like the other Indian rupee banknotes, the 2000 banknote has its amount written in 17
languages. On the obverse, the denomination is written in English and Hindi. On the reverse is a
language panel which displays the denomination of the note in 15 of the 22 official languages of
India. The languages are displayed in alphabetical order. Languages included on the panel
are Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Odia
, Punjabi, Sanskrit, Tamil, Telugu and Urdu.

Denominations in central level official languages (At below either ends)

Language 2000

English Two thousand rupees


Denominations in 15 state level/other official languages (As seen on the language panel)















GPS Chip[edit]
As per internet hoax the new 2000 note was rumoured to be embedded with a 'micro nano GPS
chip', which could help track the location of the new rupee via satellite. However, Finance
Minister Arun Jaitley dispelled rumours of the banknote having any such chip. Even the Reserve
Bank of India clarified that there is no chip.[6]

Spelling error[edit]

There was also a rumor about an error in the printing of the value of the banknotes in 15 different
languages on the reverse of the banknote. " " in Marathi was allegedly written twice
instead of once. But later it was clarified that it was Konkani, Hence it is not an error.[7]

There have also been reports of the new banknote having two spelling mistakes in
the Urdu lettering. According to Chennai based Urdu scholars, the lettering reads as "
"lo bazaar rupye (take the rupees to the market), instead of " " do hazaar
rupye (two thousand rupees).[8]

Colour Bleeding[edit]

There were reports of the 2000 notes running colour when washed. This rumour came as a
result of multiple videos showing the 2000 notes being washed in liquids ranging from water to
a aerated drink. One of the videos shows some colour left over after the note was washed.
Economic Affairs Secretary Shantikanta Das said that it was normal for the notes to lose some
colour when dissolved in liquid. The senior bureaucrat said that intaglio ink used in notes does
run a little when washed and said that if one tried it with an old 100 note as well, some colour
would leak. In fact if theres no colour, its a sign of fake currency, he said.[9]

Difference Between Tax Avoidance and Tax Evasion

May 16, 2015 By Surbhi S 1 Comment

ery assessee wants to escape from paying taxes, which encourages them to use
various means to avoid such payment. Tax Avoidance and Tax Evasion are two
techniques which are used by many people to reduce their tax liability. They
do so by taking expert advice. Tax Avoidance is completely lawful while Tax
Evasion is considered as a crime in the whole world.
In spite of many differences in the two practices, people use
them interchangeably which is incorrect. So, this article will help you to know
the significant differences between Tax Avoidance and Tax Evasion.

Content: Tax Avoidance Vs Tax Evasion

1. Comparison Chart

2. Definition

3. Key Differences

4. Conclusion

Comparison Chart


Meaning Minimization of tax liability, by taking such means which do not vio

What is it? Hedging of tax

Attributes Immoral in nature, which involves bending the law without breakin

Concept Taking unfair advantage of the shortcomings in the tax laws.

Legal implication Use of Justified means

Happened when Before the occurrence of tax liability.

Type of act Legal

Consequences Deferment of tax liability

Objective To reduce tax liability by applying the script of law.

Definition of Tax Avoidance

An arrangement made to beat the intent of the law by taking unfair advantage
of the shortcomings in the tax rules is known as Tax Avoidance. It refers to
finding out new methods or tools to avoid the payment of taxes which are
within the limits of the law.

This can be done by adjusting the accounts in a manner that it will not violate
any tax rules as well as the tax incurrence will also be minimised. Formerly tax
avoidance is considered as lawful, but now it comes to the category of crime in
some special cases.

The only purpose of tax avoidance is to postpone or shift or eliminate the tax
liability. This can be done investing in government schemes and offers like the
tax credit, tax privileges, deductions, exemptions, etc., which will result in the
reduction in the tax liability without making any offence or breach of law.

Definition of Tax Evasion

An illegal act, made to escape from paying taxes is known as Tax Evasion.
Such illegal practices can be deliberate concealment of income, manipulation
in accounts, disclosure of unreal expenses for deductions, showing personal
expenditure as business expenses, overstatement of tax credit or
exemptions suppression of profits and capital gains, etc. This will result in the
disclosure of income which is not the actual income earned by the entity.

Tax Evasion is a criminal activity for which the assessee is subject to

punishment under the law. It involves acts like:

Deliberate misrepresentation of material facts.

Hiding relevant documents.

Not maintaining complete records of all the transactions.

Making false statements.

Key Differences Between Tax Avoidance and Tax Evasion

The following are the major differences between Tax Avoidance and Tax

1. A planning made to reduce the tax burden without infringement of the

legislature is known as Tax Avoidance. An unlawful act, done to avoid
tax payment is known as Tax Evasion.

2. Tax avoidance refers to hedging of tax, but tax evasion implies the
suppression of tax.
3. Tax avoidance is immoral that tends to bend the law without causing
any damage to it. Unlike tax evasion, which is illegal and objectionable
both accordTaing to law and morality.

4. Tax avoidance aims at minimising the tax burden by applying the script
of law. However, tax evasion minimises the tax liability by exercising
unfair means.

5. Tax Avoidance involves taking benefit of the loopholes in the law.

Conversely, Tax Evasion includes the deliberate concealment of material

6. The arrangement for tax avoidance is made prior to the occurrence of

tax liability. Unlike Tax Evasion, where the arrangements for it, are
made after the occurrence of the tax liability.

7. Tax avoidance is completely legal however Tax Evasion is a criminal


8. The result of tax avoidance is the postponement of tax, whereas the

consequence of tax evasion if the assessee is found guilty of doing so, is
either imprisonment or penalty or both.

Tax Avoidance and Tax Evasion both are meant to reduce the tax liability
ultimately but what makes the difference is that the former is justified in
the eyes of the law as it does not make any offence or breaks any law.
However, it is biased as the honest tax payers are not fools, but they can also
make arrangements for postponing unnecessary tax. If we talk about the latter,
it is completely unjustified because it is a fraudulent activity, because
it involves the acts which are forbidden by the law and hence it is punishable.

Read more:

Discuss the objectives,
importance and types of tax
Avantika Goel

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Q.3. Discuss the objectives, importance and types of tax planning.

Ans. Objectives of Tax Planning Tax planning, in fact, is an honest and

rightful approach to the attainment of maximum benefits of the Income Tax
Law within the framework. Hence, the objective of tax planning cannot be
regarded as offending any concept of the law and subjected to reprehension
or reducing the inflow of revenue to the Governments offers, so long as the
taxplanning measures are in cdnformity wit h the statute laws and the
judicial exposition thereof. The prime objectives of tax planning are:

(i) Reduction of tax liability : Every taxpayer wishes to retain a maximum

part of the earnings, rather than parting with it and facing the resource
crunch. It would be in the interest of assessee to _plan the tax affairs
properly and avail the deductions, exemptions and rebate admissible under
the Act. Taxpayer can succeed in doing so by keeping an awareness of the
implications of the various business/other transactions as well as updation of
his knowledge about the various concessions of which assessee is eligible.
(ii) Minimisation of litigation : A general visualisation of the tax
administration scenario depicts a tug-of-war that the tax payers are trying
their maximum to pay the least tax and the tax administration attempting to
extract the maximum. This also results in, sometimes, protected litigations.
It is in this context that a sound tax planning pays returns. When a proper
tax planning is adopted with the provisions of laws, the incidence of litigation
is minimised. This saves the taxpayer from the hardships and inconveniences
caused by the undesire litigations, which at times even stretches upto the
High Court/ Supreme Court levels.

(iii) Productive investments : The taxation laws offer large avenues for
the productive investments of the earnings granting absolute of substantial
relief from the taxation. A taxpayer has to be constantly aware of such legal
avenues as are designed to open floodgates of his well-being, prosperity and
happiness. When earnings invested in the avenues recognised by law, they
are not only relieved of the brunt of taxation but they are also converted into
means of furthering earnings.

(iv) Healthy growth of economic : The growth of a nations economy is

synonymous with the growth and prosperity of its citizens. in this context, a
saving of earnings by legally sanctioned devices fosters the growth of both,
because savings by dubious means lead to generation of black money, the
evils of which are obvious. Conversely, tax planning measures are aimed at
generating white money having a free flow and generating without
reservations for the overall progress of the nation. Tax planning assumes a
great significance in this context.

(v) Economic stability : According to the case law of M.V. Valliapan vs.
ITO, (1988) 170 1TR 238 (Mad.), by a proper tax planning, a smooth tax
flow from the tax payer to the tax administration, without recriminations are
ensured. This results in economic stability by Away of: (a) availing avenues
for productive, investment by the tax payer, and (b) harnessing resources for
national projects aimed at general prosperity of the national economy and
reaping of benefits even by those not liable to pay tax on theer incomes.
Therefore, notwithstanding the legal rulings in cases like. McDowell and its
English parallels, real and genuine transactions aimed at valid tax planning
cannot be turned down merely; on grounds of reduction of the tax burden.

Importance of Tax Planning

One cannot deny the fact that tax planning is important to curtail or reduce
the tax liability. Tax planning is also important because of the following

(i) Assessee can avail the benefit of relief, deductions, rebate upto the date
of submission of return. These cannot be claimed at the time of appeal. As
decided in the case CIT V. Gurjargavures Ltd. (1972) 84 ITR 723 that if
there is no tax planning and there are lapses on the part of the assessee, the
benefit would be the least.

(ii) Tax planning exercise is more reliable since the Companies Law and other
laws narrow down the scope for tax avoidance and tax evasion and driving
the tax payers to a situation where the person will be free from all severe
penal consequences.

(iii) In order to encourage the programmes of public interest and good for
civilised society, the Government provides incentives in the tax laws. Hence,
a planner has to be well versed with the law concerning incentives.

(iv) Because of progressive rate of tax to an individual and Hindu Undivided

Family assessee is supposed to pay more tax, if income is increased and it
necessitates the devotion of adequate time on tax planning.

(v) Tax planning enables companies to make proper expenses planning,

capital budgeting planning, sales promotion planning etc. to reduce the tax
planning specially during inflation.

(vi) Now-a-days when credit squeeze and dearmoney conditions, even a

rupee of tax decently saved may be taken as an interest free loan from the
Government, which perhaps, an assessee need not repay.
(vii) An organisation always requires repairs, renewals, modernisation and
replacement of plants and machineries for continuous growth and to fight
with competition. Any decisions of these kind would involve huge capital
expenditure, in which is financed generally by ploughing back of profits,
reserves. Availability of profits, reserves and surplus and claiming such
expenses as revenue expenditure are possible through proper
implementation of tan planning techniques.

Thus, any legitimate steps taken by assessee directed towards maximising

tax benefits, keeping in view the intention of law, will not only help to
assessee but also to society.

Types of Tax PlanningThe tax planning exercise ranges from devising a

model for specific transaction as well as systematic planning.

These are:

(1) Short range tax planning: Short range tax planning refers to year to
year planning to achieve some specific or limited objective. In such type of
planning, there will not be a permanent commitment. An individual may
invest in PPF/NSCs within prescribed limit when income is increased It is not
suggested to take LIC/ULIP/Pension plan etc.

(2) Long range planning : Long range planning involves entering into
activities, which may not pay off immediately, e.g. transfer of assets without
consideration to minor child. The income will be clubbed to transferror upto
the child in minor but afterward, this will be an income of child.

(3) Permissive tax planning: Permissive tax planning is a planning for tax
under the express provisions of tax laws. Indian tax laws offer many
exemptions, rebates, deductions and incentives.

(4) Purposive tax planning : This planning is based on the measures

which circumvent the law. The permissive tax planning has to express
sanction of the Statute while the purposive tax planning does not carry such
sanction. Sections 60 to 65 of the Income Tax Act are related to the income
of other persons is included in the income of assessee. Here, assessee may
plan in such a way that these provisions do not get attracted. Such plan will
increase the disposable resources of assessee This is known as Purposive
tax planning.

Precautions in Tax Planning

Assessment must keep the following points in mind to plan for the tax. At the
on hand assessee is benefited by the proper planning but on the other hand
he may be in trouble:

(i) Before tax planning for finance, assessee has to interpret other related
rules and provisions and has to select better option.

(ii) Assessee is to consider the economic factors before tax plan. For
example, to get benefit of establishment of industrial undertaking by
establishing in the rural area. But this is possible that, no proper conveyance,
road, efficient labour are available. Assessee has to spend on these items
more than by the amount of tax saved.

(iii) Tax planning should not be based on tax avoidance because and when
the shortcomings of law is in the notice of the Government, these will be
amended and planning will be fail

(iv) Tax planning should not be based on the judgement of court of justice
because these may be amended by the Government in such are not
favourable to the nation.

(v) Assessee has to read all provisions of related deduction, exemption,

rebate etc. and must follow. For example, if assessee is interested to get
benefit of donation then Section 80G of tht Income Tax Act must be cleared
in the mind. Say, assessee donates furniture then no deduction will be
allowed. There are several donations on which 100% deduction is allowed but
on other only 50%. In such a case assessee must be careful.
(vi) Tax planning plans must be flexible so that it can be changed according
to the amendment done by the authority.