https://www.taxtmi.com/caselaws?id=267160 HC held that the amount received by the assessee from the employer pursuant to a settlement during pendency of a letters patent appeal was not taxable as "profits in lieu of salary" under section 17(3)(i) of the Income-tax Act. The assessee's services had already been terminated under the relevant Service Rules after payment of three months' salary, fully discharging the employer's statutory obligation. The subsequent payment was a voluntary amount paid solely to bring an end to litigation, without any obligation under service rules or statute. It did not constitute compensation for termination as envisaged by section 17(3). The issue was decided in favour of the assessee. en-us Mon, 12 Oct 2015 00:00:00 +0530 Fri, 21 Nov 2025 14:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=267160 HC held that the amount received by the assessee from the employer pursuant to a settlement during pendency of a letters patent appeal was not taxable as "profits in lieu of salary" under section 17(3)(i) of the Income-tax Act. The assessee's services had already been terminated under the relevant Service Rules after payment of three months' salary, fully discharging the employer's statutory obligation. The subsequent payment was a voluntary amount paid solely to bring an end to litigation, without any obligation under service rules or statute. It did not constitute compensation for termination as envisaged by section 17(3). The issue was decided in favour of the assessee. Case-Laws Income Tax Mon, 12 Oct 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=267160