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

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