Held that as the payment of ex gratia compensation was voluntary in nature without there being any obligation on the part of employer to pay further amount to the assessee in terms of any service rules, the payment would not amount to compensation in terms of section 17(3)(i) of the Act. There was no agreement between the assessee and his employer under which the payment was made. Order of CIT(A) deleting the addition is affirmed. The Tribunal also held that the  Departmental representative is not permitted to set up an altogether a new case with respect to the applicability of section. 17(3)(iii) of the Act. Referred, Mahindra and Mahindra Ltd v. Dy. CIT(2009) 313 ITR 263 (A.T)(Trib)(SB)  (AY.2009-10)