Tue. Jan 19th, 2021

Commissioner Of Income Tax €“Iv vs Pritam Das Narang on 16 September, 2015

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% 16.09.2015

1. This is an appeal under Section 260A of the Income Tax Act, 1961 filed

by the Revenue against the order dated 30th August, 2013 by the Income Tax

Appellate Tribunal (‘ITAT’) in ITA No.4158/Del/2011 for Assessment Year

(‘AY’) 2008-09.

2. By an order dated 9th February, 2015, the following questions of law were

framed:
3. The facts are that the Assessee filed return of income on 28 th July, 2008

declaring total income of Rs. 1,65,70,750/- and also claiming a refund of

Rs.1369/-. The return was processed under Section 143(1) on 26th August,

2009 determining a refund of Rs.860/-.

4. The case was subsequently selected for scrutiny and a notice was issued

by the Assistant Commissioner of Income Tax (ACIT) to the Assessee on

12th August, 2009. It was followed by notices under Section 142(1) of the

Act. The Assessee was asked to furnish the bank accounts for the period 1 st

April, 2007 to 31st August, 2008. The Assessing Officer (AO) noticed a

credit entry of Rs.1,70,90,650/-. The Assessee filed a letter on 16th

November, 2010 explaining the circumstances under which the payment was

received from M/s. ACEE Enterprises (‘ACEE’) against an Employment

Agreement entered into between him and ACEE on 10th January, 2007. In

terms of the said Employment Agreement, the Assessee was to be employed

as Chief Executive Officer (‘CEO’) and the employment was to commence

from 1st July, 2007. Either party at its option could terminate the

employment by giving six months’ notice to the other party in writing. In

case the notice period was less than six months, then compensation

equivalent to the shortfall of the notice period was payable by the party

concerned.

Source: Indian Kanoon

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