Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2002 (1) TMI 1306 - ITAT MUMBAI

2002 (1) TMI 1306 - ITAT MUMBAI - [2002] 83 ITD 495 - IT Appeal No. 1195 (Mum.) of 1993 - Dated:- 17-1-2002 - Satish Chandra (Accountant Member) And A. D. Jain (Judicial Member) For the Appellant : A. V. Rao For the Respondent : A. V. Sonde ORDER A. D. Jain (Judicial Member) This is an appeal by the Revenue against the order dated 26-11-1992, passed by the learned CIT(A). 2. The lone ground raised before us is : "On the facts and in the circumstances of the case and in law, the learned CIT( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re clearly attracted." 3. The assessee is a management and technical consultant. He is the proprietor of a firm, Profitech. His main activities are consultancy services in the areas of software, business strategies, human resources development and software exports, etc. Prior to starting his own business, the assessee was employed, since 2-4-1979, with M/s. Tata Unisys Ltd. ( TUL for short) in a senior position, in its computer consultancy Division. His last assignment with TUL was as Senio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ivities :- (a) Soliciting and/or rendering services to Unisys Corporation, U.S.A. or its subsidiaries and/or officiates worldwide (TUL is a Unisys Tata Joint Venture in India); (b) Soliciting and/or rendering services to TUL s customers; and (c) Soliciting and/or engaging, in any manner whatsoever, TUL s software consultants/employees. 6. In consideration of the aforesaid covenants, TUL agreed to pay to the assessee, a sum of ₹ 5,50,000 on or before 30-4-1990. 7. The assessee received the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee was a professional. 10. While rejecting the claim of the assessee, the learned Assessing Officer further observed that by virtue of the agreement dated 26-2-1990 between the assessee and TUL, the assessee was free to render professional services to, and earn income by way of fees from persons other than those stipulated therein, which the assessee did. 11. It was held that even otherwise, the amount in question was taxable under the head Salaries , in view of the provisions of sect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s or consultations which would hamper the interests of his earlier employer, TUL. TUL was also dealing in software and such other activities in which the assessee had gained a considerable knowledge and work-experience since 1979. 13. The learned Appellate Authority followed the decisions of the Hon ble Supreme Court in Best and Co. (P.) Ltd. s case (supra) and in Gillanders Aubuthnot & Co. Ltd. v. CIT [1964] 53 ITR 283. 14. Before us, the appellant-Department has relied upon the following j .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

visions in the Finance Bill, 2001, issued by the Government of India has been relied upon on behalf of the assessee. The paragraph Modification in respect of the provisions relating to salaries and perquisites states, inter alia that the Finance Bill, 2001 also proposes to provide that profits in lieu of salary include amounts received in lump sum or otherwise, prior to employment or after cessation of employment for the purposes of taxation. Our attention has been drawn to the last sentence of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

J. Visalakshi [1994] 206 ITR 531 1 (Mad.); (vii) Best and Co. (P.) Ltd. s ( supra); and (viii) R.N. Agarwala v. CIT [1960] 38 ITR 67 (Bom.). 18. It would be apt to reproduce here, the provisions of section 17(3)(i) of the Income-tax Act. If this provision, so says the Revenue, which covers the case at hand. Section 17(3)(i) :- 17(3) "Profits in lieu of salary" includes :- (i) the amount of any compensation due to or received by an assessee from his employer or former employer at or in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a break in the stipulated tenure. However, it could not, and does not, by any stretch of imagination, include a case of voluntary retirement or resignation, as is the one at hand. It would be downright erroneous, wrong and bad construction to read into the provision that which its plain language does not state. The intention of the Legislature in not including the present situation within the ambit of the section is explicitly manifest in the syntax chosen. 20. The legislative intent of excludin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version