PRASAD VIJAYKUMR KULKARNI ,AURANGABAD vs. INCOME TAX OFFICER WARD 1(1), AURANGABAD, AURANGABAD

ITA 850/PUN/2024Status: DisposedITAT Pune17 September 2024AY 2019-20Bench: SHRI R. K. PANDA (Vice President), MS ASTHA CHANDRA (Judicial Member)10 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the ex-gratia payment was voluntary and not in the nature of compensation for termination of employment. Therefore, it was not taxable as profit in lieu of salary.

What were the facts?

The assessee claimed deduction under Section 89 for an ex-gratia payment received from Pfizer. During assessment, the assessee sought to withdraw this claim, arguing the payment was a capital receipt. The Assessing Officer treated it as profit in lieu of salary.

What were the issues?

Whether an ex-gratia payment received by an employee is taxable as profit in lieu of salary or is a capital receipt.

Which sections of the Income-tax Act were involved?

Section 89,Section 17(3)(i)

AI-generated summary — verify with the full judgment below

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

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

For Appellant: Shri Nikhil S Pathak and Ms. Arrchena Shetty
For Respondent: Shri A.D. Kulkarni, Addl. CIT

PER ASTHA CHANDRA, JM :

This appeal filed by the assessee is directed against the order dated 23.02.2024 of the CIT(A) / NFAC, Delhi relating to assessment year 2019-20. 2. Facts of the case in brief, are that the assessee is an individual and filed his return of income on 07.08.2019 declaring total income at Rs.66,05,280/-. The case was selected for scrutiny and statutory notices u/s 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) were issued and served on the assessee, in response to which the AR of the assessee appeared and filed the requisite details. During the course of assessment proceedings the Assessing Officer noted that the assessee has claim

The order continues below.

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