SOME RELEVANT CASE-LAWS

12.1	Employer-employee relationship: The nature and extent of control which is the basis requisite to establish employer- employee relationship would vary from business to business. The test which is uniformly applied in order to determine the relationship is the existence of a "right to control" in respect of the manner in which the work is to be done.   (Dharangadhra Commercial Works v State of Saurashtra 1957 SCR 152)
12.2	Leave Encashment(S.10(10AA): Retirement" includes resignation. What is relevant is retirement: how it took place is immaterial for the purpose of this clause. Therefore even on resignation, if an employee gets any amount by way of leave encashment, S10(10AA) would apply.(CIT v D.P. Malhotra(1997) 142 CTR 325(Bom)). (CIT vR.J. Shahney(1986)(159 ITR 160(Mad)
12.3	House Rent Allowance(S.10(13A): When commission is paid to a person based upon fixed percentage of turnover achieved by the employee it would amount to "Salary" for the purpose of Rule 2 (h) of part A of IV Schedule(Gestetner Duplicators vCIT 117 ITR 1 (SC)).
12.4	Perquisite (S17): 12.4.1      One can not be said to allow a perquisite to an employee if the employee has no vested right to the same. (CIT v L.W. Russel(1964) 531 ITR 91 (SC)).      12.4.2      Reimbursement of expenses incurred by the employee has been intended to be roped in the definition of " Salary" by bringing it as part of " Profit in lieu of salary." ( I.E . I Ltd. v CIT (!993) 204 ITR 386(Cal)
12.5	Rent free Accommodation: A rent free accommodation was provided to the assessee by his employer but the never occupied it. Held that, unless the employee expressly forgoes his right to occupying it, the perk value would be taxable even though he never occupies it. (CIT v B.S. Chauhan 150 ITR 8(Del)).
12.6	Deduction under S.80G: By the very nature of calculation required to be made u/s 80G(4) it is necessary that all deduction under chapter VIA be first ascertained and deducted before granting deduction u/s 80G (Scindia Steam Navigation Co v CIT (1994) 75 Taxman 495(Bom))
12.7	Deduction u/s 80RRA: Fees received by a consultant or technical for rendering services abroad would also come within the purview of s 80RRA (CBDT v Aditya V. Birla (1988) 170 ITR 137(SC))
12.8	Relief u/s 89: Where arrears of salary are paid under orders of court, the employee would be entitled to relief u/s 89. (K.C. Joshi v Union of India(1987) 163 ITR 597(SC).
12.9	Revised return A belated return filed u/s 139(4) can not be revised u/s 139(5). ( Kumar J.C. Sinha v CIT (1996) 86 Taxman 122(SC)).
12.10	Return showing income below taxable limit: Is a valid return. (CIT v Ranchhoddas Karosands(1959(361ITR 869 (SC)).