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

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 in

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