SHRI RAJESH SHANTARAM CHAVAN,MUMBAI vs. ACIT CIR -34(2), MUMBAI

ITA 1841/MUM/2021Status: DisposedITAT Mumbai22 April 2022AY 2017-1816 pages
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What did the Tribunal hold?

The Tribunal held that the compensation received by the assessee should be treated as salary received in advance, not as compensation for loss of employment. Therefore, the assessee is entitled to claim relief under Section 89(1).

What were the facts?

The assessee received a lump-sum ex-gratia payment as compensation for termination of employment. The company treated this as salary paid in advance and deducted TDS. The assessee claimed relief under Section 89(1) of the Income Tax Act, 1961, by spreading the income over future years.

What were the issues?

Whether the lump-sum ex-gratia payment received by the assessee is to be treated as salary in advance or compensation for loss of employment for the purpose of claiming relief under Section 89(1)?

Which sections of the Income-tax Act were involved?

Section 89

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Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: SHRI AMARJIT SINGH, HONBLE & SHRI S. RIFAUR RAHMAN, HONBLE

For Appellant: Shri Jitendra Jain &, Shri Ravikant S. Pathak
Hearing: 07.04.2022Pronounced: 22.04.2022

PER S. RIFAUR RAHMAN (AM)

1.

This appeal is filed by the assessee against order of Learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter for short "Ld. CIT(A)] dated 23.08.2021 for the A.Y.2017-18. 2 ITA.NO. 1841/MUM/2021 (A.Y: 2017-18) Shri Rajesh Shantaram Chavan

2.

Brief facts of the case are, assessee e-filed his return of income on 01.08.2017 declaring total income of ₹.61,13,070/- the return was processed u/s.143(1) of Income-tax Act, 1961 (in short “Act”) and thereafter t

The order continues below.

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