Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
Retroactive interim-moratorium exclusion permits protective asset disclosure and preservation measures against personal guarantors pending arbitration...
The settlement consideration received by the assessee for relinquishing the right to seek registration of sweat equity shares, after cessation of employment, cannot be treated as 'profits in lieu of salary' u/s 17(3) of the Income Tax Act. The consideration was for unconditional relinquishment of the right to enforce registration of shares and not connected with termination of employment or modification of service terms. The Tribunal erred in segregating the consideration into 'capital gains' and 'salaries' components. The entire consideration is to be treated as 'capital gains' and not 'profits in lieu of salary'. The High Court allowed the appeal, set aside the Tribunal's order, and answered the question of law in favor of the assessee.
The settlement consideration received by the assessee for relinquishing the right to seek registration of sweat equity shares, after cessation of employment, cannot be treated as 'profits in lieu of salary' u/s 17(3) of the Income Tax Act. The consideration was for unconditional relinquishment of the right to enforce registration of shares and not connected with termination of employment or modification of service terms. The Tribunal erred in segregating the consideration into 'capital gains' and 'salaries' components. The entire consideration is to be treated as 'capital gains' and not 'profits in lieu of salary'. The High Court allowed the appeal, set aside the Tribunal's order, and answered the question of law in favor of the assessee.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4788
Join Channel
TaxTMI 
