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Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
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Specified fund definition expands PAN exemption eligibility for registered alternative investment funds and qualifying International Financial Service...
Tax exemption for specified legal-services authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and...
The ITAT dismissed the appeal of the assessee, upholding the order of the CIT(A) treating the severance compensation as taxable "profits in lieu of salary" under s.17(3) of the Income-tax Act. It was conclusively found that the payment by the employer was neither voluntary nor gratuitous, but directly linked to services rendered prior to cessation of employment. No evidence was produced to establish that the amount was compensatory for loss of employment in the capital field or in the nature of a capital receipt. In view of the specific statutory inclusion under s.17(3)(iii) and the absence of any contrary material, the ITAT held that the severance pay constituted taxable income under the head "Salaries." All grounds raised by the assessee were rejected and the addition was sustained.
The ITAT dismissed the appeal of the assessee, upholding the order of the CIT(A) treating the severance compensation as taxable "profits in lieu of salary" under s.17(3) of the Income-tax Act. It was conclusively found that the payment by the employer was neither voluntary nor gratuitous, but directly linked to services rendered prior to cessation of employment. No evidence was produced to establish that the amount was compensatory for loss of employment in the capital field or in the nature of a capital receipt. In view of the specific statutory inclusion under s.17(3)(iii) and the absence of any contrary material, the ITAT held that the severance pay constituted taxable income under the head "Salaries." All grounds raised by the assessee were rejected and the addition was sustained.
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