TMI Blog2008 (12) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ishra alongwith the respondent (in person) for the Respondent. JUDGMENT BADAR DURREZ AHMED, J (ORAL) - The revenue is in appeal being aggrieved by the common order dated 09.05.2008 passed by the Income-tax Appellate Tribunal in relation to the assessment years 2003-04 and 2004-05. The Assessing Officer had made an addition in respect of the amount of compensation and interest received by the assessee from the Government of the United States of America. 2. In January, 1982, the assessee had applied for a job in the Voice of America which was a state owned broadcasting agency. In 1984, the assessee was informed that she had cleared the competitive test. But, she was never offered the job. It is relevant to note that in 1977, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettled by then, were entitled to the said sum of US$ 508 million in full and final settlement of all claims for the relief, including without limitation, all claims for back pay, instatement, front pay, retirement and other employee benefits and pre-judgment interest. Post-judgment interest was also decreed from the date on which the consent decree was approved by the court upto the date of payment. Consequently, the assessee received her share out of US$ 508 million which was given to the entire class of 1100 claimants (except those claimants whose cases had been individually decided by then). 4. The question that has arisen in the present case is whether the said amount received by the assessee in the two assessment years in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyment with that person; or (B) After cessation of his employment with that person.' The expression 'profits in lieu of salary' bears reference to the provisions of Section 17 (1) which defines salary for the purposes of Sections 15, 16 and 17. Salary, inter alia, includes profits in lieu of salary as per Section 17(1)(iv) of the said Act. It is in this context that the expression 'profits in lieu of salary' has been defined in Section 17(3) of the said Act. The case of the revenue is that the amounts received by the assessee fall under Section 17 (3)(iii) of the said Act. We have already extracted the relevant portion of Section 17(3)(iii) above. A plain reading thereof would indicate that the amount due or received whether in lump su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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