Vineet Sethi Vs ITO (ITAT Bangalore)
The assessee has been terminated vide letter issued by TBM Consultants India Pvt. Ltd. dated 23.2.2016 due to misconduct of the assessee, wherein it was alleged that assessee has been indulging in activities, which are prejudicial to the interest of the employer company and assessee was promoting and carrying out his own personal business activities, which business activities were in competition to the employer company by using website namely www.vineetsethi.com and being so it cannot be said that assessee’s termination was beyond the assessee’s control.
It was submitted that assessee has been terminated from service due to reason beyond his control, as such the assessee entitled for exemption u/s 10(12) of the Act.
Assessee has not offered assessee’s own contribution of Rs.16,43,894/- to income tax by claiming exemption u/s 10(12) of the Income-tax Act,1961 [‘the Act’ for short]. However, the AO while processing the return u/s 143(1) of the Act brought to tax the amount of Rs.16,43,894/- on the reason that it is not exempted u/s 10(12) of the Act. Against this assessee went in appeal before ld. CIT(A) challenging the disallowance of deduction claimed at Rs.15,96,983/-.
ITAT held termination of employee cannot be said that it is beyond the control of the assessee. Therefore, the exemption u/s 10(12) of the Act is not available to the assesse.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal by assessee is directed against order of NFAC dated 10.1.2023 for the assessment year 2017-18.
2. The assessee has received provident fund of an amount of Rs.35,02,307/-, which has been reflected in Form No.26AS which shows the deduction of TDS of Rs.3,50,231/-. The breakup of that amount is as follows:-
