A funny case law (income tax act)

@ Madhavi & @ Kaushik Nikhil : Can it be treated gift from God ? But how can we get depreciation as we never come to know it's cost ?  This is just for thought and LOL.

sir not necessarily depreciation, you can cover under section 37.. please note that the case has been unnecessarily publicized because of AAP connection.  Business entities are allowed to claim expense incurrred for health related issues for their directors, partners, employees etc.  The question at the base of this case is whether the same is allowed to individual professionals.  In this regard Delhi High Court preferred to differentiate from cases in favor of assessees and argue that individuals are not allowed for the same, which to a large extent I believe is a wrong position.  A practicing business/professional has everything dependent on his health.  To say that the same is not relevant for his profession, at the same time arguing that health of director is relevant for the company, is discrimination.    Thats all. 

"Business entities are allowed to claim expense incurrred for health related issues for their directors, partners, employees etc.  The question at the base of this case is whether the same is allowed to individual professionals."

One of the advantages of forming Firms, companies is that you can give allowances to ur partners/ directors/ employees for health related issues and claim deduction. But please note that when that amount (health allowance)is finally taxed in the individual hands of partners/ directors, no deduction is given to them for health related expenses and it is taxed. So, in effect, just the income is transferred from company to another assessee(director), there is no real tax saving. The director is taxed for the health allowance which he gets while the company gets deduction.

So, the position of law is quite clear and there is no discrimination.

(if health expenditure is allowed to Individuals, why not claim grocery, clothing,domestic help, laundary bills? A person has to eat to stay alive and work right?)

 

A very good explanation Madhavi..............

HAHAHHHHAAHA

Mr Shanti Bhushan also having many cases against income tax.

For small assessee it is time taken part and impractical for doing business

Heart and human orangs are not shown as fixed assets to the assets side of Balanceh sheet. It is not purchased by the Assessee.No financial cost charged for  that asses. Hence not depreciable.