TMI BlogCompensation for Non-Renewal of Contract Not Termination, Tribunal Rules; Additions Under Income Tax Act Sections Removed.Characterization of receipt - Compensation receipt on termination of contract - Addition under Section 28(ii)(e) - The Tribunal differentiates between termination and non-renewal of a contract and argues that the compensation received due to non-renewal should not be treated as termination under Section 28(ii)(e) or Section 56(2)(xi). - Reference is made to section 2(zh) of the Industrial Relations Code, 2020, to support the argument that non-renewal of a contract is distinct from retrenchment. - AO directed to delete the additions. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|