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2017 (4) TMI 965 - ITAT AHMEDABAD

2017 (4) TMI 965 - ITAT AHMEDABAD - TMI - Salary income - Amount received after deducting Notice pay - whether liable to be taxed under the head "Salary" u/s. 16? - Held that:- We find that employers have made deduction from the salary which was paid to the assessee during the year under consideration because of leaving the services as per agreement made by the assessee and the respective employer. We find that this is a case of recovery of the salary which is already made to the assessee for wh .....

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e 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 is dismissed. - ITA No. 2378/Ahd/2013 - Dated:- 18-4-2017 .....

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4/- on the ground that the amount received as Notice pay is liable to be taxed under the head "Salary" u/s. 16 of the IT. Act. It is submitted that the amounts received of ₹ 1,64,636/- and ₹ 1,10,550/- both as Notice pay do not form part of the Salary Income as they are capital receipts. It is submitted that on the basis of fact and decisions by Appellate Authorities, the amount received as Notice pay of ₹ 2,76,744/- be not taxed as Salary Income and the addition made .....

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ssessee, 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 .....

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- and ₹ 5,46,060/- respectively; out of which the assessee has only shown the salary income of ₹ 11,45,880/- received from Sistema Shyam Teleservices Ltd after claiming deduction under Chapter VI-A of the Act. Since the assessee was failed to disclose the salary income from other two employers, the undisclosed salary income of ₹ 1,64,636/- received from Reliance Communication Ltd and ₹ 5,46,060/- received from Videocon Tele Communications Ltd were added to the total incom .....

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on 15,16 v& 17 of Income-tax Act. As per Section 15, salary income is charged on the due basis whether paid or not. Accordingly, the AO has charged 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 eq .....

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the doctrine of real income is inapplicable, because Section 15 of the I.T. Act imposes the charge when salary becomes due whether paid or not The deduction of notice period is essentially application of income, after it has become due. The Madras High Court in the case of CIT Vs. P. Natraja Shastri (1976) 104 ITR 295 has held that where remuneration has already accrued to assessee and it was waived, it was rightly brought to tax by the Assessing Officer. The appellant during the hearing has rel .....

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eard the ld. Departmental Representative and the perused the material available on record. We find that during the year under consideration the assessee served with Reliance Communication for 39 days for the period 01.04.2009 to 09.05.2009 and received a total salary of ₹ 1,64,636/-, out of which ₹ 1,10,550/- was recovered as notice pay as per agreement with the employer. Therefore, the assessee declared salary income of ₹ 54,086/- after deducting notice pay of ₹ 1,10,550 .....

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