1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Furnishing Scheme- Electronic Items Assets Defined

ByCA Gopal Nathani

Sep 2, 2020

The CBDT in their Circular No. 15/2001 dated 12.12.2001has clarified that the higher rate of depreciation is prescribed only in respect of computers and electronic items. Further the Circular reads that the electronic gadgets would mean only data storage and handling devices like computer, digital dairies and printers for their higher degree of obsolescence. Further the Circular clarifies that they do not include white goods such as washing machines, microwave ovens, mixers, hot plates, ovens, refrigerators, music systems, television etc. In such cases the value of perquisite upon transfer of such assets shall be worked out by reducing of its actual cost by reducing balance method @ 10% of cost for each completed year of use.

In our view even mobile sets would also fall in the category of electronic gadgets and therefore qualify for 50% depreciation rate. Employers are advised to relist the items in their furnishing scheme in accordance with the clarification of the Board.