India Income Tax Made Simple

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Excerpt: Under Clause (f) of Section 43B any sum payable by the employer/assessee to its employees as leave encashment shall be available for deduction only in computing the income referred to in Section 28 of that previous year in which such sum is actually paid by the employer to its employees.Calcutta High Court had struck the aforesaid clause (f) as being arbitrary and unconscionable in Exide Industries Ltd vs UOI 292 ITR 470 .Income Tax department filed Special Leave Petition in Supreme Court which stayed the order of the Calcutta High court and decided that assessee must pay tax as if…

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Excerpt: Whether Stock Exchange Card is an asset for the purpose of Depreciation was always a matter of interpretation differently by assessee and income tax department.While the Department had all along treated memebrship card of stock exchange as not an asset for depreciation claim , the assessee claimed otherwise. Till now various benches of Tribunal have given verdict in favour of assessee and allowed depreciation claim on cost of memebrship of stock exchange. Some of these rulings were in follwowing case laws:Techno Shares & Stock Ltd vs ITO [2006]101 ITR 349Peninsular Capital Market vs ACIT [2008] 19 SOT 421R.M Valippan vs…