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2012 (6) TMI 347 - AT - Income TaxProfit in lieu of salary - perquisite - Whether CIT(A) erred in confirming the order, bring to tax sum of Rs. 7.5 lakhs as the compensation after termination of employment as profits in lieu of salary - 'any compensation' received by an assessee from his employer in connection with the termination of his employment, the modification of restrictions thereto relating to the termination of employment, the same constitutes 'compensation' taxable u/s 17(3)(i) of the Act. - it is also clear that any sum received by the assessee from the employer or former employer in connection with the termination of his employment, such amount falls within profits in lieu of salary as per clause (i) of sec. 17(3) of the Act. - the sum of Rs. 7.5 lakhs received by the assessee-employee is strictly subjected to certain obligations. - Clause (iii) of section 17(3) is inapplicable to the AY (2001-02) under consideration - Decided against the assessee Rent free accommodation - Held that:- there is no dispute on the allotment of the rent free accommodation to the assesse. CIT(A) relied on rule 3(1) of the I T Rules, 1961 and taxed the said perquisite at the rate of 10% of the salary, which is in order. Accordingly, the order of the CIT(A) does not call for any interference and thus, ground is dismissed Free Food of the Club - Perquisite of Rs. 5,600 – Held that:- assessee has undisputedly availed the said perquisite and therefore attracted the provisions of rule 37(iii) relating to free meal provided by the club-employer. order of the CIT(A) does not call for any interference on this issue. Accordingly dismissed Ad hoc disallowance for want of evidences - held that:- disallowances in the claims for want of evidences. The assessee could not demonstrate the genuineness of the claims either during the assessment proceedings or in first appellate proceedings. Assessee could not improve his case in before us too. We have examined the facts and discussed if the claims of the assessee must be allowed when the claim of deduction is made by him but could not evidence the claim. - Decided against the assessee.
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