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TMI Blog2023 (2) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee as the share holding of the company even though the assessee has himself admitted that the shares were not registered by the company on 08.06.2010 and it was registered only on 23.01.2014." 2. "Whether on the facts and circumstances of case and in law, the Ld. CIT(A) was correct in considering the ' foregoing of right to receive equity share' by the assessee was the same as giving up the capital asset of Share." 3. "Whether on the facts and circumstances of case and in law, the Ld. CIT(A) was correct in not appreciating the fact that the right to forego equity shares did not exist till the company agreed on the terms of settlement with the share holders." 4. "Whether on the facts and circumstances of case and in law, the Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of the shares in his favour; (ii) shall immediately, upon payment of the settlement Amount, hand over all share certificates in relation to the shares, in original, to the second party; (iii) shall not seek to enforce any right, title or interest in the shares or the share certificates; (iv) shall not seek to enforce any right, title or interest in the Second Party arising out of or with respect to his previous employment with the second party; and (v) shall withdraw the company petitions filed against the second party within 5 business days of the receipt of payment of the settlement amount." 5. The AO held that the fact, that these shares have not been registered in the name of the assessee was never in dispute. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and date of payment 7. Admittedly the assessee has worked from 01.12.2007 to 29.08.2010, thus, completing two full years to be eligible for 15,000 shares. 8. This leads to a question whether the receipts in pursuance to the agreement for relinquishing the right which has been accrued be considered as capital gains or not. 9. The provisions of Section 17(3)(iii) reads as under: "Section 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 connection with the termination of his employment or the modification of the terms and conditions relating thereto; (ii) any payment (other than any payment referred to in cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng unconditional and irrecoverable relinquishment of his rights to enforce registration of the shares. We are also conscious of the fact that the assessee has received one lump sum amount towards the settlement, hence a deep thought went into as to whether the entire amounts has to be taxed under one head of income or not. 12. At first sight, it might be thought that the determination of tax for variables such as salary, capital gain, income from other sources should be the same in the case of the instant assessee. But there are circumstances in which different sources are to be treated appropriately as per the reasons of arising of such source of income. The fundamental point, of course, is that taxation exist for different reasons for di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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