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June 2024

Section 17(3) — payment of ex-gratia compensation without any obligation on the part of employer to pay an amount in terms of any service rule would not amount be taxable under section 17(3)(i). The Departmental Representative is required to confine to his arguments to points considered by AO / CIT(A) and could not set up altogether a new case before ITAT and assume the position of the CIT under section 263.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 2 mins

17 ITO vs. Avirook Sen

(2024) 161 taxmann.com 462 (DelTrib)

ITA No.: 6659(Delhi) of 2015

A.Y.: 2009–10

Dated: 12th April, 2024

Section 17(3) — payment of ex-gratia compensation without any obligation on the part of employer to pay an amount in terms of any service rule would not amount be taxable under section 17(3)(i).

The Departmental Representative is required to confine to his arguments to points considered by AO / CIT(A) and could not set up altogether a new case before ITAT and assume the position of the CIT under section 263.

FACTS

During F.Y. 2008–09, the assessee received ₹2,00,00,000 as lumpsum from his employer after his termination from service and ₹13,08,444 for purchase of a new car.

The AO sough

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