Amount paid by employee due to breach of non-compete agreement cannot be taxed as salary

Advertisement Pramod Murlidhar Unde Vs ACIT (ITAT Pune) ITAT Pune held that amount refunded back to the employer on account of breach of non-compete agreement by the employee cannot be construed as salary for the purpose of charging income tax. Facts- It was observed that total income of the assessee has been reduced to RS.3,82,65,860/- in the revised return filed, from Rs. 4,63,15,860/- as disclosed in the original return, which is found to be attributable to reduction in the salary income disclosed originally. During the assessment proceedings, the assessee was asked to explain the reduct...