Amount received by a prospective employee as compensation for denial of employment is capital receipt

Brief of the case Delhi High Court in case of CIT vs Pritam Das Narang held that Amount received by a prospective employee ‘as compensation for denial of employment,’ is a capital receipt . In case of assessee , where there was no commencement of employment and Assessee was withdrawn even prior to commencement of such employment, amount received for such denial of commencement of employment , could not be taxed under the head ‘profits in lieu of salary’. DHC relied on CIT v. Rani Shankar Mishra (2010) 320 ITR 542 (Del). Facts of the case The assessee received payment from M/s...