https://www.taxtmi.com/caselaws?id=759661 The ITAT Ahmedabad held that severance compensation received by the assessee in AY 2018-19 constituted a non-taxable capital receipt rather than profits in lieu of salary under Section 17(3). The tribunal noted that Section 56(2)(xi), which deals with termination compensation, was only applicable from AY 2019-20 onwards and therefore had no bearing on the current case. The CIT(A)'s order was set aside, the AO's addition was deleted, and consequential interest and penalty proceedings were also set aside. The assessee's appeal was allowed. en-us Thu, 03 Oct 2024 00:00:00 +0530 Sat, 05 Oct 2024 08:54:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759661 The ITAT Ahmedabad held that severance compensation received by the assessee in AY 2018-19 constituted a non-taxable capital receipt rather than profits in lieu of salary under Section 17(3). The tribunal noted that Section 56(2)(xi), which deals with termination compensation, was only applicable from AY 2019-20 onwards and therefore had no bearing on the current case. The CIT(A)'s order was set aside, the AO's addition was deleted, and consequential interest and penalty proceedings were also set aside. The assessee's appeal was allowed. Case-Laws Income Tax Thu, 03 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759661