Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 306 - ITAT PUNESalary income - Deduction of refunded amount of salary - reduction in the salary income disclosed in the revised return filed - Only real income can be taxed - Non-acceptance of Revised return - Non-observation of section 4 of Income-tax Act, 1961 - Assessee has been reduced amount in the revised return filed as disclosed in the original return, which is found to be attributable to reduction in the salary income disclosed originally - HELD THAT:- Admittedly, when the assessee had received the entire compensation package of Rs. 2.01 crores from Vedanta, he had shown that in in his original return of income. Thereafter, due to the dispute, the assessee had paid back Rs. 80.5 lakhs back to the employer out of the said total amount. This has been duly reflected again in the revised return of income. Before us also, the evidence has been placed by which the event of refunding the money of Rs. 80.5 lakhs to Vedanta Ltd. is established. When a particular amount is actually not retained by an assessee, then there does not arise any question of tax for that amount. If the event of transaction is for A.Y. 2017-18 then also, the department should have given effect to the amount which is actually not part of the total income of the assessee. The amount which has already been refunded back cannot be brought within purview of tax since the chargeability to tax of such refunded amount does not arise. The assessee had made a refund of Rs. 80.5 lakhs on account of provisions contained in the confidentiality and noncompete agreement read with MOU between the assessee and Vedanta Ltd. and therefore, such refund cannot be construed as salary for the purpose of charging to tax. Such amount therefore, is not assessable as income. In view thereof, we set aside the order of the ld. CIT(A) and allow the grounds of appeal.
|