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TMI Blog2006 (10) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... pal Yadav, Judicial Member. - The assessee is in appeal before us against the order of ld. CIT(A) XXIX, Mumbai dated 28-2-2003 passed for assessment year 1997-98. The first grievance of assessee relates to re-opening of the assessment under section 147 of the Income-tax Act. The ld. counsel for the assessee at the time of hearing did not press this ground of appeal, hence it is rejected. 2. The n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in a well reasoned order upheld the order of the Assessing Officer. 5. We have heard ld. representatives of the parties and gone through the record carefully. This amount of Rs. 22 lakhs has been taxed under section 17(3)(i) of the Income-tax Act by the Assessing Officer, hence it is imperative upon us to first have a look on this provision, which read as under : "Section 17(3) 'profits in lie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the expression "Keyman insurance policy" shall have the meaning assigned to it in clause (10D) of section 10. (iii)any amount due to or received, whether in lump sum or otherwise, by any assessee from any person-- (A)before his joining any employment with that person; or (B)after cessation of his employment with that person." While taking us through this provision the ld. counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al G. Shah v. CIT [2005] 277 ITR 277 (Guj.) (5)Asstt. CIT v. Prakash G. Heblkar [2002] 83 ITD 495 (Mum.) On the other hand, ld. D.R. relied upon the orders of the revenue authorities below. 6. On due consideration of the contentions of ld. representatives as well as on perusal of the record we find that the employer of the assessee treated this payment as business expenses and claimed the deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion the termination referred to in section 17(3)(i) would mean relinquishment of the job, either voluntarily, resignation or on attaining the superannuation. This payment has been made just after two months from relinquishment of the job. Therefore, it is closely associated with the employment. The ld. authorities below have rightly taxed this amount. At the time of hearing we have gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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