SC: Lays down law on lease depreciation, lessor also eligible for higher rate benefit 

SC reverses High Court ruling; Lessor (an NBFC) leasing vehicles to customers is "owner" as well as "user" for the purpose of claiming depreciation u/s 32 of IT Act; Use

Jan 15,2013

SC: Advance tax payment not adequate "disclosure" under Search & Seizure provisions 

SC reverses Madras HC ruling on Search & Seizure law; Unable to accept that payment of Advance Tax based on “current income” involves disclosure of “total income”; For income to

Jan 14,2013

SC: Upholds trust's exemption; Post-dated donation cheques not undue advantage for trustees 

Receipt of post-dated cheques by the trust from donor does not constitute undue advantage for the donor; Neither assessee-trust nor donor took any advantage/ claimed benefit before the cheque was

Jan 10,2013

SC: Absence of "concession" in accommodation perquisite does not absolve employer's TDS liability

Determination of element of "concession" in accommodation perquisite under new Rule 3 not relevant for determining TDS liability of employer assessee i.e. ONGC; Issue can be raised by employee and

Nov 28,2012

SC: Upholds deduction for employees' club membership fee as "pure business expense" 

Club membership fee of the employees is ‘pure business expense’ and deductions allowed u/s 37; Referred to various HC rulings which have held that club membership fee of employee is

Oct 25,2012

SC: ‘Contribution’ and not ‘reimbursement’, subject matter of Sec 40A(9) disallowance

Interpretation of Sec 40A(9) brings out dichotomy between 'contribution' and 'reimbursement'; No disallowance unless expenses claimed in the nature of ‘contribution’; ITAT directed to decide matter afresh after giving clear

Oct 01,2012

SC: Permits deviation in stock valuation; considers "levy price" over cost/ market value 

If facts permit, closing stock can be valued at a price other than cost or market value, though this is the accepted practice; Regards to be given to character of

Sep 27,2012

SC: "Silly mistake" or "Human error" not justifiable grounds to levy penalty 

No penalty on erroneous tax claim by PwC due to "human error"; Even assessee of high expertise and reputation can make "silly mistake"; AO also overlooked the mistake during original

Sep 26,2012

SC: Rejects 'theoretical exercise' of recomputing amortised income 

Assessee offered to tax interest from debentures as difference between purchase price and redemption price; Income offered on proportionate basis over the life of debentures; HC order taxing income in

Sep 14,2012

SC: NRI donors must show financial capacity to "gift" to discharge Sec 68 onus 

NRI donors assessed to tax in Singapore must show adequate funds in bank accounts and financial capacity to make gifts; Burden on the assessee u/s 68 as recipient to show

Sep 14,2012