(i) Amounts received by an assessee from the foreign holding company of his employer company on redemption of stock appreciation rights, being “fruits of employment” is chargeable to tax as “salaries” despite the absence of an employer-employee relationship (ii) there is a fundamental difference between stock options and stock appreciation rights.
See also: CIT vs. Infosys Technologies (Supreme Court)
Related Judgements
- Saurabh Srivastava vs. DCIT (ITAT Delhi Special Bench)
Consideration received by an assessee for agreeing not to compete constitutes a capital receipt even though (i) the period of restraint is only 18 months and (ii) the assessee continued service with the payer-company as Managing Director.
