https://www.taxtmi.com/caselaws?id=20466 The High Court of Madras upheld the Tribunal's decision that ex gratia compensation received upon resignation is entitled to relief under section 89(1) of the Income-tax Act, 1961. The court emphasized that the term "termination of employment" in section 17(3)(i) should not be narrowly interpreted and that restricting its meaning would defeat the purpose of the beneficial clauses aimed at granting benefits to employees. Additionally, the court ruled that if the ex gratia amount is not considered falling under section 17(3), it cannot be assessed as income for tax purposes as it is a capital receipt, not earned for services rendered. en-us Thu, 25 Nov 1993 00:00:00 +0530 Sat, 14 Nov 2009 11:27:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20466 The High Court of Madras upheld the Tribunal's decision that ex gratia compensation received upon resignation is entitled to relief under section 89(1) of the Income-tax Act, 1961. The court emphasized that the term "termination of employment" in section 17(3)(i) should not be narrowly interpreted and that restricting its meaning would defeat the purpose of the beneficial clauses aimed at granting benefits to employees. Additionally, the court ruled that if the ex gratia amount is not considered falling under section 17(3), it cannot be assessed as income for tax purposes as it is a capital receipt, not earned for services rendered. Case-Laws Income Tax Thu, 25 Nov 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20466