https://www.taxtmi.com/caselaws?id=277036 A voluntary payment by a former employer was held taxable as salary where the contemporaneous order showed it was made in consideration of loyal and meritorious past services. The later description of the payment as a gift did not alter its true character, because Explanation 2 to section 7(1) covered remuneration or recompense for past employment, subject only to the specific exclusion for compensation for loss of employment. Once the receipt arose from the employment relationship and fell within section 7(1), its casual or non-recurring nature did not exempt it from tax. The amount was therefore taxable in the assessee's hands. en-us Mon, 06 Oct 1958 00:00:00 +0530 Thu, 22 Nov 2018 16:01:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277036 A voluntary payment by a former employer was held taxable as salary where the contemporaneous order showed it was made in consideration of loyal and meritorious past services. The later description of the payment as a gift did not alter its true character, because Explanation 2 to section 7(1) covered remuneration or recompense for past employment, subject only to the specific exclusion for compensation for loss of employment. Once the receipt arose from the employment relationship and fell within section 7(1), its casual or non-recurring nature did not exempt it from tax. The amount was therefore taxable in the assessee's hands. Case-Laws Income Tax Mon, 06 Oct 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277036