https://www.taxtmi.com/caselaws?id=49457 The tax character of a termination payment depends on the legal effect of the employment agreement, termination letter and settlement arrangement, not merely on primary facts. Where those documents determine whether the receipt was in lieu of past services or otherwise taxable under section 7 of the Indian Income-tax Act, the issue is one of law and can justify a statement of case under the reference procedure. The text emphasises that a court should not treat the character of such a payment as conclusively factual when document construction is decisive. en-us Thu, 04 May 1961 00:00:00 +0530 Sat, 14 Aug 2010 14:03:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49457 The tax character of a termination payment depends on the legal effect of the employment agreement, termination letter and settlement arrangement, not merely on primary facts. Where those documents determine whether the receipt was in lieu of past services or otherwise taxable under section 7 of the Indian Income-tax Act, the issue is one of law and can justify a statement of case under the reference procedure. The text emphasises that a court should not treat the character of such a payment as conclusively factual when document construction is decisive. Case-Laws Income Tax Thu, 04 May 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49457