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2005 (7) TMI 40 - HC - Income TaxCessation of the employer and employee relationship - "1. Whether, the sum of Rs. 96,000 is liable to be taxed in accordance with the provisions of section 17(3)(i) read with section 17(1)(iv) of the Act for the assessment year 1980-81?" - it appears that M/s. Sandvik Asia Ltd. had offered additional amount of Rs. 96,000 to the assessee on his agreeing not to accept similar job in any other competing organisation for a minimum period of two years - This payment of Rs. 96,000, thus, can hardly be linked up with the salary, or perquisites and profits. The receipt of this amount is after cessation of the employer and employee relationship. This receipt of amount, thus, can only be capital receipt. The Tribunal was, thus, not justified in treating it as part of the salary for the assessment year 1980-81. In view of our finding, the question is answered in the negative, i.e., in favour of the assessee and against the Revenue
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