https://www.taxtmi.com/caselaws?id=757117 ITAT Pune held that voluntary compensation received by an employee upon resignation from service constitutes a capital receipt, not taxable under section 17(3) as profits in lieu of salary. The tribunal noted that other employees from the same company received identical treatment where assessing officers treated such compensation as capital in nature without revenue challenge, creating binding precedent. Following ITO vs. Avirook Sen, the tribunal ruled that ex-gratia compensation paid voluntarily without employer obligation under service rules does not qualify as compensation under section 17(3). The addition was deleted and assessee's appeal allowed. en-us Mon, 12 Aug 2024 00:00:00 +0530 Fri, 16 Aug 2024 08:19:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757117 ITAT Pune held that voluntary compensation received by an employee upon resignation from service constitutes a capital receipt, not taxable under section 17(3) as profits in lieu of salary. The tribunal noted that other employees from the same company received identical treatment where assessing officers treated such compensation as capital in nature without revenue challenge, creating binding precedent. Following ITO vs. Avirook Sen, the tribunal ruled that ex-gratia compensation paid voluntarily without employer obligation under service rules does not qualify as compensation under section 17(3). The addition was deleted and assessee's appeal allowed. Case-Laws Income Tax Mon, 12 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757117