Settlement Consideration Liable To Be Recognized As “Capital Gains” And Not “Profits In Lieu Of Salary”: Delhi High Court

New Delhi, August 7, 2024 – The Delhi High Court has ruled in favor of Akash Poddar, clarifying the classification of settlement consideration under the Income Tax Act. The Court decided that the settlement amount received by Poddar should be categorized as capital gains rather than profits in lieu of salary, overturning the previous decision by the Tribunal. Case Background The case involves Akash Poddar, who received a settlement amount…