TMI Blog2017 (4) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... ucting the notice period as per the job agreement with them. Therefore, in our considered view, the actual salary received by the assessee is only taxable and therefore, we allow this ground of appeal of the assessee. Undisclosed interest income from bank and interest income - Held that:- As at the time of assessment proceedings the assessee had accepted that the interest income from bank and interest income from Reliance Infocom Ltd employee provident fund was remained undisclosed in the return of income. The assessee has not provided supporting evidence that the particular income is exempt from the income tax, therefore we do not find any reason to interfere in the finding of the Ld.CIT(A). Thus, this ground of appeal of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee at the time of hearing. The issue being small, the appeal is decided ex-parte qua the assessee, after hearing the ld. Departmental Representative and perusing the material available on record. 4. The brief facts of the case are that the assessee is an individual, deriving income from salary, house property and other sources. For the year under consideration, the return of income was filed on 16.03.2011, declaring total income of ₹ 11,45,880/-. Subsequently, the case was reopened by issuing notice under Section 148 of the Act on 04.07.2012 on the ground that the assessee has not disclosed the salary received from his previous two employers namely M/s. Videocon Tele Communication Ltd and Reliance Communication Ltd. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the salary to income-tax on due basis. The deduction allowed under the head 'salary' is provided under Section 16, which is as under: (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;] (iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.] Clearly the deduction made by the employer for the notice period is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyer. Therefore, the assessee declared salary income of ₹ 54,086/- after deducting notice pay of ₹ 1,10,550/-. Thereafter, the assessee joined in Sistema Shyam Teleservices Ltd where he served for a period from 18.05.2009 to 24.02.2010 and received a total salary of ₹ 13,95,880/- out of which ₹ 1,66,194/- was deducted as notice pay as per agreement with employer. Therefore, notice pay of total ₹ 2,76,744/- was claimed in the return of income as deduction which was recovered from the salary by assessee s previous employers as mentioned above. The Ld. CIT(A) was of the view that no such deduction is available under Section 16 of the Act and the salary income is taxable on due basis or on paid basis. After conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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