PARESH VITHAL PADWALKAR,AURANGABAD vs. INCOME TAX OFFICER WARD1(1), AURANGABAD, AURANGABAD

ITA 2305/PUN/2025Status: DisposedITAT Pune08 June 2026AY 2019-208 pages
AI SummaryAllowed

What were the facts?

The assessee received Rs. 34,66,866/- as voluntary retirement compensation from his employer. The Assessing Officer treated this as revenue receipt and taxed it under Section 56(2)(xi) of the Income Tax Act, 1961. The CIT(A) confirmed this addition.

What did the Tribunal hold?

The Tribunal held that the compensation received on voluntary retirement, as per the scheme, does not constitute termination of employment. Therefore, Section 56(2)(xi) is not applicable, and the amount is a capital receipt.

What were the issues?

Whether compensation received on voluntary retirement is taxable under Section 56(2)(xi) as income from other sources, or if it is a capital receipt.

Which sections of the Income-tax Act were involved?

Section 56(2)(xi),Section 10(10C),Section 80JJAA(2)(iii)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA

For Appellant: Shri Nikhil S Pathak &
For Respondent: Shri Sandip Pawar

PER ASTHA CHANDRA, JM :

The appeal filed by the assessee is directed against the order dated 20.08.2025 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)/NFAC”] pertaining to Assessment Year (“AY”) 2019-20. 2. Briefly stated facts of the case are that the assessee is an individual and ex-employee of M/s. Pfizer Healthcare India Pvt. Ltd., Aurangabad (“Pfizer India”) and duly filed his return of income for AY 2019-20. Based on the information received by the Ld. Assessing Officer (“AO”) that Pfizer India has granted voluntarily retirement to his employees in Februar

The order continues below.

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