VALANGAIMAN RADHANANDA KISHORE VENKATARAMAN,CHENNAI vs. ITO, NCC-3(1), CHENNAI

ITA 4099/CHNY/2025Status: DisposedITAT Chennai21 July 2026AY 2017-187 pages
AI SummaryAllowed

What were the facts?

The assessee claimed relief under Section 89(1) for a lump sum payment received after cessation of employment, which was calculated based on yearly performance and equity appreciation. The Assessing Officer disallowed the claim, stating no reply was received, and later disallowed it on the grounds that the payment was received upon voluntary retirement.

What did the Tribunal hold?

The Tribunal held that the lump sum payment received by the assessee had a dual character, comprising both compensation and arrears of salary for previous years. Therefore, the assessee was entitled to the benefit of Section 89(1).

What were the issues?

Whether a lump sum payment received after cessation of employment, calculated based on yearly performance, qualifies for relief under Section 89(1) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 89(1),Section 17

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: HONOURABLE GEORGE GEORGE K. & SHRI GAGAN GOYAL

Hearing: 29.06.2026Pronounced: 21.07.2026

PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of the Ld. Addl. / JCIT (A)-5, Mumbai (hereinafter referred as the ‘Ld. Addl. / JCIT (A)-5), dated 31.10.2025 for the assessment year (hereinafter referred as the ‘AY’) 2017-18. GROUNDS OF APPEAL In response to the Show Cause Notice dated 05 November 2019, the Assessee

The order continues below.

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