Receipt of compensation due to non-renewal of contract not taxable u/s. 28(ii)(e): ITAT Delhi

Padma Rao Vs C.I.T (ITAT Delhi) ITAT Delhi held that as non-renewal doesn’t amount to termination, accordingly, receipt of compensation on account of non-renewal of contract cannot be taxed under section 28(ii)(e) of the Income Tax Act. Facts- During the course of scrutiny assessment proceedings, AO came to know that the assessee has received compensation from M/s Spiegel Verlag, Spiegel Publishers amounting to 3 crores which was claimed to be exempt by her u/s 4 of the Income Tax Act. AO added the said compensation as taxable u/s. 28(ii)(e) of the Income Tax Act. CIT(A) confirmed the said a...