Can anyone tell me any case law on the following issue:-
Mr. A joins XYZ ltd. in april 2009 under a bond of three years. Mr. A leaves the company after 2 years i.e. in F.Y. 2011-2012 due to which Rs. 25000 was deducted from the full and final payment to Mr. A by XYZ ltd. as penalty.
Mr. A joins ABC ltd in F.Y. 2011-2012
Total income of Mr. A in F.Y. 2011-2012 is as follows
Form 16 received from XYZ ltd. Rs. 200000
Form 16 received from ABC ltd. Rs. 150000
Less penalty paid 25000
On how much amount Mr. A is liable to tax i.e. on Rs. 350000 or Rs. 325000
If on Rs. 325000 then is there any case law which justifies it.
CAclubindia
