“Section 17(3)”

Dnyaneshwar Shinde, Aurangabad vs. Income Tax Officer, Ward 1(1), Aurangabad

In the result, appeal of the assessee is allowed

Bench: Shri R.K. Panda & Ms. Astha Chandra

qualify for exemption u/s 10(10)(iii) of the Act. This amount is fully taxable as ―profits in lieu of salary‖ under section 17(3) of the Act. 7.4 In light of the above mentioned facts the submissions furnished by the appellant on 03.03.2025 & 28.04.2025 are not found tenable ... employer to pay further amount to assessee in terms of any service rule. it would not amount to compensation in terms of section 17(3)(i) of the Act. The impugned addition was rightly deleted by the Ld. CIT(A). The aforesaid point is accordingly determined against the revenue department

Mahadeo Ahilaji Vir, Pune vs. ACIT, NFAC, Pune

In the result, appeal of the assessee is allowed

Bench: Dr. Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1532/Pun/2025 धििाारण वर्ा / Assessment Year: 2018-19 Mahadeo Ahilaji Vir, Vs Acit, Nfac, 469, Balaji Nagar, Pune Ganesh Nagar 2, Medankarwadi, Chakan Khed, Rajgurunagar, Pune-410501 Maharashtra Pan-Afdpv2328A Appellant Respondent

additional compensation received by the assessee from his employer as profit in lieu of salary u/s 17(3) (iii) of the Act. Section 17(3)(iii) of the Act provides as follows: "17. For the purposes of sections 15 and 16 of this section (1)--------------- (3) "profits in lieu ... compensation. 7. Admittedly, the amount was received by the assessee after cessation of his employment with the employer company. In the normal course, section 17(3)(iii) of the Act would apply and the payment would be covered within the definition of profit in lieu of salary as brought

Joydeep Das, Pune vs. Deputy Commissioner of Income Tax, Circle (8), Pune

In the result, the appeal filed by the assessee is allowed for statistical purposes

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2018-19 Joydeep Das Dcit, Circle 8, Pune Flat No.L/505, Sapphire Park Chs Vs. Ltd., Park Street, Wakad, Pune – 411057 Pan: Alxpd5599D (Appellant) (Respondent) Assessee By : Shri Nikhil S. Pathak & Ms Arrchena Shetty Department By : Shri Ramnath P Murkunde Date Of Hearing : 29-07-2025 Date Of Pronouncement : 30-07-2025 O R D E R

voluntarily paid as 'severance pay' out of sweet will. 7.5 Further, the legal provision laid down by clause (1) and (iii) of section 17(3) is iterated herein for better reference- 5 "(3) "profits in lieu of salary" includes (i) The amount of any compensation due to or received ... treated as income at the hands of the employees/persons and to tax them. For that reason, sub-clause (iii) was inserted in section 17(3). This also implies that such a payment was not taxable before this amendment was carried out by inserting sub-clause (iii) with effect from

Parna Vasudevaiah, Aurangabad vs. Income Tax Officer, Ward-1(1), Aurangabad

In the result, appeal of the Assessee is allowed

Bench: Shri Rama Kanta Panda, Vice- & Ms. Astha Chandra

retirement in full and final settlement, the amount received by the assessee was properly assessable as salary income. As per the provisions of Section 17(3) (i) of the Income-tax Act it was profit in lieu of salary and hence it is assessable under the head "Salary". The same ... said amount on voluntary retirement in full and final settlement which is taxable as profits in lieu of salary under the provisions of section 17(3)(i) of the Act. 4. Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A), who upheld the order

Maruti Keshavrao Didhore, Aurangabad vs. Assistant Comissioner of Income Tax, Circle 1, Aurangabad

In the result, appeal of the assessee is allowed

Bench: Shri Rama Kanta Panda, Vice- & Ms. Astha Chandra

return of income offered the amount received from his employer, Colgate Palmolive Ltd. as his salary income under the provisions of section 17(3) of the Act as profits in lieu of salary and claimed relief under section 89 read with Rule 21A(1)(a) of the Income Tax Rules ... dispute that the amount is taxable not as arrears of salary or advance salary, but profits in lieu of salary, as provided under section 17(3) of the Act, it is eligible for relief under section 89(1) of the Act.” 4. Aggrieved, the assessee filed an appeal before

Godavari Vijay Kulkarni (L/H of Late Vijay Kulkarni), Aurangabad vs. ITO, Ward-1(1), Aurangabad

In the result, the appeal filed by the assessee is allowed

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2019-20

employer to pay further amount to assessee in terms of any service rule. it would not amount to compensation in terms of section 17(3)(i) of the Act. The impugned addition was rightly deleted by the Ld. CIT(A). The aforesaid point is accordingly determined against the revenue department ... further amounts to the assessee in terms of any service rule and therefore, would not amount to compensation in terms of section 17(3) of the Act. We, therefore, set aside the order of the CIT(A) / NFAC and direct the Assessing Officer to delete the addition. The grounds raised

Shrikant Anantrao Zori, Aurangabad vs. Income Tax Officer Ward 1(1) Aurangabad, Aurangabad

In the result, the appeal of the assessee is partly allowed

been held "Admittedly, the amount was received by the assessee after cessation of his employment with the employer company. In the normal course, section 17(3)(iii) of the Act would apply and the payment would be covered within the definition of profit in lieu of salary as brought ... itself stated that the payment has been made voluntarily by them out of appreciation for the employee thus falls outside the rigours of section 17(3)(iii) of the Act. In view thereof, we set aside the order of the NFAC and direct the Id. A.O to delete the addition