Ex-Gratia Payment on Unit Closure Not Taxable as Salary: ITAT Chennai

Kalyanasundaram Ranjithkumar Vs ITO (ITAT Chennai)

Case Summary and Holding

The Income Tax Appellate Tribunal (ITAT), Chennai Bench, heard an appeal filed by the assessee, Kalyanasundaram Ranjithkumar, challenging the taxation of an ex-gratia payment received from his employer, Pfizer Healthcare India Pvt. Ltd., following the closure of its manufacturing unit. The core issue was whether this payment, claimed as exempt by the assessee, constituted taxable income as “profits in lieu of salary” under Section

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