TMI Blog2016 (5) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... on of employment. As per service certificate of bank and the assessee has left the bank on his own accord. The submissions of the Revenue being the amount repaid by the assessee to the Barclays Bank was reimbursed by new employer Deutsche Bank. The assessee joined Deutsche Bank due to attractive pay package and separate amount was provided for refund of sign-on-bonus. On the perusal of provisions of Sec. 17(1) of the Act, there are no explanation were assessee should reduce refund of sign-on-bonus. Considering the apparent facts, terms of employment, characteristic of sign on bonus and the service certificate of Barclays Bank were assessee has voluntarily left the service. We are of the opinion that ld. Commissioner of Income Tax (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer based on the form No. 16 issued by the employer found that the assessee s salary income is ₹ 68,54,815/- were as the assessee has not offered salary income of ₹ 25,00,000/- in the return of income. Further notice u/s.148 of the Act was issued and in compliance to notice, the ld. Authorised Representative of the assessee filed return of income on 19.07.2011 and appeared in hearing proceedings from time to time and submitted information for verification. The assessee is a employee of Barclays Bank during the financial year 2007-08 from 01.04.2007 to 31.10.2007 and received salary income of ₹ 13,46,943/- after resignation of service joined Deutsche Bank and received salary of ₹ 56,12,481/- were as the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Representative of the assessee argued on the grounds and submitted proofs pertaining to sign-on-bonus. The ld. Commissioner of Income Tax (Appeals) considered written submissions on facts and interpretation of laws and concurred with findings of the Assessing Officer and dismissed the appeal observed at 18 of the order as under:- 18. In view of the above discussion, I find no infirmity in the action of the Assessing Officer in reassessing the total income of the assessee to bring to tax the amount of sign-on-bonus of ₹ 25,00,000/- relating to the assessment year 2007-2008 which was tax deducted then and reduced from the assessee s total income by the assessee himself in the return of income for the subsequent assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2007-08. The issue revolved around whether the provision of Act permit deduction were the assessee voluntarily resigned from Barclays Bank and joined Deutsche Bank violating the pre-conditions of employment to stay with Barclays Bank for a period of one year. The ld. Departmental Representative vehemently argued and explained the action of the Assessing Officer and Commissioner of Income Tax (Appeals) are as per the provisions of law. The characteristic of sign in bonus is Revenue receipt and it cannot be considered as compensation of forfeited amount or additional premium prize. The assessee has received the amount during his employment and there exists employer and employee relationship and sign-inbonus cannot treated as capi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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