9911796707
TMI Blog2023 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as "the Act") was issued to the assessee on 08/08/2018, through e-assessment portal of the ITBA. Thereafter, notice uls 142(1) of the Act with a questionnaire was issued on 11/09/2018, through e-assessment portal, calling for various details which was duly served to the assessee. 3. In response to the Notices along with the questionnaire issued, the assessee has submitted various details called for such as copy of ITRs filed, computation of income, copy of 26AS, form No. 16, etc. through e-filing portal. During the year under consideration, the assessee was in employment with multiple employers, namely, Vedanta Limited, Goa, KEC International Limited, Mumbai & Hindalco Industries Ltd., Mumbai, from whom he has received salary. Apart from salary, the assessee has claimed loss from house property and shown income from other sources which mainly consists of interest received on deposits. 4. In the course of verification, it was observed that total income of the assessee has been reduced to RS.3,82,65,860/- in the revised return filed, from Rs. 4,63,15,860/- as disclosed in the original return, which is found to be attributable to reduction in the salary income disclosed ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee from taking employment with any company operating in the same field for a period of 30 months. The terms of this agreement would have become operational only in the case of breach of e agreement which would be a subsequent event and the same would not have affected the factum of receipt of salary by the assessee during the year as the same has already received by him. As highlighted in the show cause notice extracted hereinabove, the terms of the agreement became operational upon breach of the same by the act of the assesee in taking-up employment with a competitor within the cool off period. Thus. any compensation the assessee had to pay or loss he had to sustain is inextricably linked to taking up of the subsequent employment and the same cannot in any way affect the actual receipt of salary by the assessee from his previous employer. 4.1 Another aspect of the matter is that, as can be seen from the relevant documents on record, the MoU wherein the compensation amount is quantified has been executed on 27/06/2016 and the payment was actually made on 01/07/2016 i.e. both the events took place in the FY 2016-17 and not in the year under consideration. It is trite law t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving its office at 20 EDC Complex, Patto, Panaji, Goa (hereinafter referred to as "the Company). Whereas A. Pramod W:JS employed with the Company till .26111 May . .20} S (Date of Relieving) and on the Date of Relieving, executed Confidentiality and Non-Compete Agreement dated .261b May 2015 (CAN). ). B, CNCA inter-alia provided that PRAMOD shall not during the period of 30 months from the date of relieving, join or serve any competing organization, whether directly or indirectly. C. Company issued a letter to Pramod alleging violation of the terms and conditions of CNCA, which were contested by Pramod. The Com v also demanded refund of severance package of Rs. 80.5 l.akh (Rupees Eighty Lakhs Thousand only) on these grounds. D. Company and Pramod have been in discussion since (the issue of letter by the Company to Pramod and have the Parties have agreed to resolve any inter se issues amicably and have therefore agreed to enter into this agreement. NOW THE PARTIES AGREE AS FOLLOWS: 1. Within 30 days of execution of this MOU. PRAMOD shall remit an amount OF Rs. 80.5 lakhs to the Company. 2. Effective from the date of refund till the amount of Rs. 80.5 lakhs; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt of salary by the assessee from his previous employer. Another ground of the department is that the relevant document on record i.e. MOU wherein the compensation amount is quantified has been executed on 27-06-2016 and the payment was actually made on 01-07-2016 i.e. both the events have taken place in F.Y. 2016-17 relevant to A.Y. 2017-18 and not in the year under consideration. Since every assessment year is separate unit for the purpose of Income-tax Act, therefore, any income received or is deemed to be received or accrued or arised or is deemed to be accrued or arised during that year is taxable in that year itself. Therefore, loss sustained/damage suffered, if any, during the subsequent year cannot alter the receipt of income by an assessee in the year of receipt. 9. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en refunded in view of the legal requirements under the Companies Act, 1956, the same could not be held as the assessee's income and, therefore, was not assessable. Consequently, the assessee got the relief of Rs. 10,17,112 in respect of the refunded amount. 6. Being aggrieved, the revenue preferred an appeal before the Income-tax Appellate Tribunal. The Tribunal, by virtue of the impugned order, has accepted the finding, returned by the Commissioner of Income-tax (Appeals) and has rejected the plea raised by the revenue. The Tribunal noted that the assessee being the Managing Director of the Company (M/s. Alcatel Modi Network Systems Ltd.) was entitled to managerial remuneration in accordance with the resolution passed in the AGMs of the shareholders of the company held on 30-9-1996 and 5- 5-1997. It was in the AGM held on 30-9-1996 that the assessee had been appointed as a wholetime director for a period of five years with effect from 4-12-1995 on the remuneration stated therein. In the AGM held on 5-5-1997, the assessee was appointed as the Managing Director with effect from 10-4-1997. The resolution passed in that AGM specifically indicates that where in any financial ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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