https://www.taxtmi.com/caselaws?id=7705 A lump-sum compromise payment made after repudiation of a service contract was treated as compensation for loss of employment, not as taxable salary or profit in lieu of salary. The payment was made in settlement of a wrongful-dismissal claim and in return for the employee abandoning all contractual rights, so the earlier service arrangement and its terminal-payment clause did not govern the compromise. The inclusion of a salary claim in the suit did not change the character of the receipt. The amount was therefore characterised as a capital receipt arising from termination of employment and excluded from assessment as salary income. en-us Thu, 04 Dec 1969 00:00:00 +0530 Tue, 17 Mar 2009 17:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7705 A lump-sum compromise payment made after repudiation of a service contract was treated as compensation for loss of employment, not as taxable salary or profit in lieu of salary. The payment was made in settlement of a wrongful-dismissal claim and in return for the employee abandoning all contractual rights, so the earlier service arrangement and its terminal-payment clause did not govern the compromise. The inclusion of a salary claim in the suit did not change the character of the receipt. The amount was therefore characterised as a capital receipt arising from termination of employment and excluded from assessment as salary income. Case-Laws Income Tax Thu, 04 Dec 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7705