Taxability of Amount received by prospective employee for loss of employment

CA Suraj R. Agrawal Amount received by prospective employee for loss of employment offer is a capital receipt and is neither taxable as “salary”  and nor as “Income From other sources” A) Facts of the case: a. Assessee filed return of income on 28th July, 2008 declaring total income of Rs. 1,65,70,750/- and also claiming a refund of Rs.1369/-. b. The return was processed under Section 143(1) on 26th August, 2009 determining a refund of Rs.860/-. c.  The Assessing Officer (AO) noticed a credit entry of Rs.1,70,90,650/- received from M/s. ACEE Enterprises (ACEE) ...