Commissioner Of Income Tax ÂIv vs Pritam Das Narang on 16 September, 2015
2 min read% 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