TaxTMI 
TaxTMI 
2023 (2) TMI 558
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....n recognizing the compensation received by the assessee as the share holding of the company even though the assessee has himself admitted that the shares were not registered by the company on 08.06.2010 and it was registered only on 23.01.2014." 2. "Whether on the facts and circumstances of case and in law, the Ld. CIT(A) was correct in considering the ' foregoing of right to receive equity share' by the assessee was the same as giving up the capital asset of Share." 3. "Whether on the facts and circumstances of case and in law, the Ld. CIT(A) was correct in not appreciating the fact that the right to forego equity shares did not exist till the company agreed on the terms of settlement with the share holders." 4. ....
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....lly and irrevocably relinquishes his claim to any right and entitlement to enforce registration of the shares in his favour; (ii) shall immediately, upon payment of the settlement Amount, hand over all share certificates in relation to the shares, in original, to the second party; (iii) shall not seek to enforce any right, title or interest in the shares or the share certificates; (iv) shall not seek to enforce any right, title or interest in the Second Party arising out of or with respect to his previous employment with the second party; and (v) shall withdraw the company petitions filed against the second party within 5 business days of the receipt of payment of the settlement amount." 5. The AO held that the fact, that these shares ha....
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....ointment terminated 5. 29.03.2012 - CLB order sheet for status quo maintenance 6. 23.01.2014 - Settlement agreement and date of payment 7. Admittedly the assessee has worked from 01.12.2007 to 29.08.2010, thus, completing two full years to be eligible for 15,000 shares. 8. This leads to a question whether the receipts in pursuance to the agreement for relinquishing the right which has been accrued be considered as capital gains or not. 9. The provisions of Section 17(3)(iii) reads as under: "Section 17.......... (3) "profits in lieu of salary" includes- (i) the amount of any compensation due to or received by an assessee from his employer or former employer at or in con....
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....e stock options have not been given to the assessee by the way of not registering though the share certificates have been issued. Subsequently, there has been a settlement between the assessee and employer wherein one clause (5)(i) being unconditional and irrecoverable relinquishment of his rights to enforce registration of the shares. We are also conscious of the fact that the assessee has received one lump sum amount towards the settlement, hence a deep thought went into as to whether the entire amounts has to be taxed under one head of income or not. 12. At first sight, it might be thought that the determination of tax for variables such as salary, capital gain, income from other sources should be the same in the case of the instant a....