ITAT adjudicated a tax dispute concerning compensation receipt ...

Tax Dispute Resolved: Ex-Gratia Payment Deemed Capital Receipt, Not Taxable Under Section 17(3)

April 8, 2025

Case Laws Income Tax AT

ITAT adjudicated a tax dispute concerning compensation receipt upon employment termination. The tribunal determined that ex-gratia payment constitutes a capital receipt, thus not taxable under section 17(3). Relying on precedential cases involving similar compensation scenarios, the tribunal ruled in favor of the assessee. The ex-gratia amount was characterized as capital in nature, consequently excluding it from taxable income. The appellate tribunal allowed the assessee's appeal, effectively exempting the compensation from tax liability and establishing a consistent interpretative approach for similar compensation-related tax assessments.

View Source

← Previous Next →

ITAT adjudicated a tax dispute concerning compensation receipt ...

Tax Dispute Resolved: Ex-Gratia Payment Deemed Capital Receipt, Not Taxable Under Section 17(3)

April 8, 2025

Case Laws Income Tax AT

You may also like:

Nature of receipt - Profits in lieu of salary or capital receipt - Receipt on termination of employment - Taxability u/s 17(3)(iii) - The Tribunal considered precedents...

Deduction in respect of ex-gratia payment made to employees - there being no restriction or prohibition under Section 37 of the Income Tax Act, 1961 on the claim for...

Dispute regarding non-payment/short payment of service tax, tax demand and interest u/ss 73(2) and 75, penalties u/ss 77 and 78 of the Finance Act, 1994, and extended...

The assessee, an employee who resigned voluntarily from Pfizer Healthcare India Pvt. Ltd., Aurangabad, received compensation which was accepted as capital in nature by...

Direct Tax Vivad se Vishwas Act - VSV Act - settlement of the dispute of petitioner for assessment year 2015-16 without withdrawing the interest already granted under...

Valuation of services - receipt of ex-gratia job charges - the present ex-gratia charges made by the M/s Parle to the appellant were towards making good the damages,...

Short term capital gain - capital gain arose from transfer of land to the partnership firm by way of capital contribution as the assets was converted to Fixed Capital...

Additions u/s 40A(3) - Purchase payments in cash in contravention to the provisions of section 40 A(3) - the assessee is merely facilitator and intermediary in the...

Advance tax payment obligation does not apply when assessee claims agricultural land sale proceeds are exempt u/s 2(14). CIT(Appeals) should admit appeal for...

Disallowance of cash payments in excess of prescribed limit u/s. 40A(3) - even though few payments is covered u/s. 40A(3) of the Act, because of peculiar nature of...

Revenue receipt or capital receipt - Foreign exchange gain written back on cancellation of vessel construction contract taxed u/s. 28(iv) - The ITAT agreed with the...

Excise Duty Refund - Revenue receipt or capital receipt - the excise duty refund received is in the nature of capital receipt and is not exigible to the tax - HC

Capital Receipt vs Revenue Receipt - Excise Duty refund is to be treated as ‘capital receipt’ in the hands of the assessee and not liable to be taxed - AT

Taxability of Cash compensation received – capital receipt vs Revenue receipt - Capital receipt in principle is outside the scope of income chargeable to tax. .... - AT

Amount received covered u/s 10(3) - Revenue has been unable to make out a case for treating the said receipt as of a casual and non-recurring nature that could be...

Quick Updates: