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2005 (2) TMI 70 - GUJARAT HIGH COURTWhether, the compensation paid by a non-resident Mehta Group for loss of employment in India was 'profits in lieu of salary/within the meaning of the expression in section 17(3)(i) and, therefore, taxable as salary under section 15? - Till the insertion of clause (iii) in section 17(3), such an amount received by an assessee, namely, from a person who is not an employer, either before or after cessation of employment with that person, is not taxable. In the circumstances, the Tribunal was not justified in holding that the amount of compensation was taxable under the head "Salaries" within the meaning of the phrase "profits in lieu of salary". - Whether the Tribunal was right in law in taxing in the hands of the assessee Rs. 7,500 paid to advocate, Shri Raval, for his services in respect of Girnar Scooter Project?" - It is not possible to accept the finding of the Tribunal that the amount of Rs. 7500, was application of income or that it was not expended wholly and exclusively for the purposes of making or earning income. -Both questions are answered in the negative, i.e., in favour of the assessee and against the Revenue.
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