Supreme Court of India

Commissioner of Income Tax, Bangalore v. Infosys Technologies Ltd.

Neutral citation
Reported as [2008] 1 S.C.R. 136
Bench S.H. Kapadia J.
Decided 4 January 2008

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We hold that in the absence of legislative F mandate a potential benefit could not be consi(lered as "income" of the employee(s) chargeable under the head "salaries".

Judgment, page 13

From the headnote

Income Tax Act, 1961; S. 17(2)(iii a) as inserted .by amendment; Ss.20 & 192: c Perquisite value - Employees Stock Option Scheme - Issuance of warrant convertible into equity by Employees Welfare Trust of a company - Non-transferable for five years - Liability of assessee to deduct tax on perquisite value/ difference between market value of share and price paid by the employees - Held: Not liable - Income earned from shares allotted under the Scheme not taxable in terms of extant provisions under the Act - Since shares allotted not transferable for five years, they have no realizable value -

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