SUNIL VISHNU GAIKWAD ,MUMBAI vs. ITO, WARD, 42(3)(4), MUMBAI

ITA 4506/MUM/2024Status: DisposedITAT Mumbai24 October 2024AY 2017-18Bench: SMT. BEENA PILLAI (Judicial Member), SMT. RENU JAUHRI (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal, following a coordinate bench's decision in a similar case, held that the ex-gratia payment was salary received in advance and not compensation for loss of office. The assessee is entitled to relief under Section 89(1) of the Act.

What were the facts?

The assessee received an ex-gratia amount of Rs. 28,91,094/- from M/s. Century Textiles and Industries Ltd. upon the company's closure. The assessee claimed relief under Section 89(1) of the Income-tax Act, 1961, which was disallowed by the Assessing Officer and the CIT(A). The appeal was filed with a delay of 479 days.

What were the issues?

Whether the ex-gratia payment received by the assessee is to be treated as salary in advance or compensation for loss of employment, and consequently, whether relief under Section 89(1) of the Income-tax Act is admissible.

Which sections of the Income-tax Act were involved?

Section 89(1),Section 21A(1)(c),Section 21A(1)(a),Section 234C,Section 244A,Section 17(3)(i),Section 192,Section 7,Section 17

AI-generated summary — verify with the full judgment below

Before: SMT. BEENA PILLAI & SMT. RENU JAUHRI

For Appellant: Shri Bharat Kumar
For Respondent: Ms. Usha Gaikwad
Hearing: 14.10.2024Pronounced: 24.10.2024

PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai-46/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 15.03.2023 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2017-18. 2. The assessee has raised following grounds of appeal:

P a g e | 2 A.Y. 2017-18 Sunil Vishnu Gaikwad

“1. On facts, in circumstances of the case and in law, the learned CIT(A) erred in confirming stand of A.O. about relief u/s.89(1) of Income Tax Act

The order continues below.

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