https://www.taxtmi.com/caselaws?id=49532 A voluntary payment by a former employer is taxable as salary or profit in lieu of salary only if it is received in consideration of employment or as remuneration for past services; where the facts show a personal gift made in token of affection and esteem, it falls outside the charging provision. On the evidence discussed, the payment was characterised as a gift rather than a salary-related receipt, because the surrounding circumstances and later confirmation by the donor did not show any employment-linked consideration. The amount was therefore treated as not taxable under section 7(1) read with Explanation 2, while the dissent would have treated it as taxable remuneration for past services. en-us Tue, 29 Nov 1960 00:00:00 +0530 Mon, 01 Sep 2014 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49532 A voluntary payment by a former employer is taxable as salary or profit in lieu of salary only if it is received in consideration of employment or as remuneration for past services; where the facts show a personal gift made in token of affection and esteem, it falls outside the charging provision. On the evidence discussed, the payment was characterised as a gift rather than a salary-related receipt, because the surrounding circumstances and later confirmation by the donor did not show any employment-linked consideration. The amount was therefore treated as not taxable under section 7(1) read with Explanation 2, while the dissent would have treated it as taxable remuneration for past services. Case-Laws Income Tax Tue, 29 Nov 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49532