Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT allowed the assessee's appeal, holding that the ex-gratia lump-sum received on closure of the employer's unit constituted voluntary payment and, on the facts, did not form part of salary nor represented compensation taxable under section 17(3); accordingly the sum was not exigible to tax as profits in lieu of salary. The AO's reliance on the CBDT circular to disallow exemption claimed under section 10 was set aside, the addition deleted and the order of the lower authority reversed. The Tribunal found precedent on identical facts supported treating the payment as non-compensatory, permitting exemption treatment and granting relief to the assessee.
ITAT allowed the assessee's appeal, holding that the ex-gratia lump-sum received on closure of the employer's unit constituted voluntary payment and, on the facts, did not form part of salary nor represented compensation taxable under section 17(3); accordingly the sum was not exigible to tax as profits in lieu of salary. The AO's reliance on the CBDT circular to disallow exemption claimed under section 10 was set aside, the addition deleted and the order of the lower authority reversed. The Tribunal found precedent on identical facts supported treating the payment as non-compensatory, permitting exemption treatment and granting relief to the assessee.
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TaxTMI 
TaxTMI 
of 4916 
