JOYDEEP DAS ,PUNE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE (8), PUNE

ITA 2336/PUN/2024Status: DisposedITAT Pune30 July 2025Bench: SHRI R. K. PANDA (Vice President), MS. ASTHA CHANDRA (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the appointment letter, containing terms for termination and resignation with notice or payment in lieu, was submitted for the first time. Therefore, the issue was restored to the AO for fresh adjudication.

What were the facts?

The assessee received severance pay of Rs. 30,86,974/- upon cessation of employment. The Assessing Officer treated this as taxable salary, which was upheld by the CIT(A). The assessee argued it was a capital receipt based on resignation and company's acceptance.

What were the issues?

Whether severance pay received upon cessation of employment is taxable as salary or a capital receipt, considering the terms of employment and the nature of cessation.

Which sections of the Income-tax Act were involved?

Section 17(3)

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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

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

For Appellant: Shri Nikhil S. Pathak and Ms Arrchena Shetty
For Respondent: Shri Ramnath P Murkunde

PER R.K. PANDA, VP:

This appeal filed by the assessee is directed against the order dated 11.09.2024 of the Ld. CIT(A) / NFAC, relating to assessment year 2018-19. 2. Facts of the case, in brief, are that the assessee is a Resident Indian and salaried employee. During the year under consideration the assessee has earned salary income from Monsanto India Limited of Rs.55,54,015/- and Syngenta India Limited of Rs.9,37,481/-. The assessee has also received severance pay of Rs.30,86,974/-, leave encashment of Rs.1,27,718/- and gratuity amount of Rs.4,04,758/- which is exempt from tax. The case was selected for complete scrutiny assessment under the E-assessment Scheme, 2019 on the following issues:

2 S.

The order continues below.

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