Shri Parvez Mukhtar Khan vs. The Income Tax Officer

Parties Involved

Facts Summary

Shri Parvez Mukhtar Khan, a salaried employee of Pfizer Healthcare India Pvt. Ltd., received compensation of Rs.77,41,038/- after the company decided to close its manufacturing unit due to long-term losses. The company implemented a financial scheme for its employees, offering them a choice to voluntarily retire with a financial package. The Assessing Officer treated the compensation as taxable income under section 89 of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer's decision, leading to the appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the compensation received by the assessee should be treated as taxable income under section 17(3) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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