https://www.taxtmi.com/caselaws?id=5788 The SC held that City Compensatory Allowance (CCA), Dearness Allowance (DA), and House Rent Allowance (HRA) are taxable income under Section 17 of the Income Tax Act, 1961. The court interpreted "profits in lieu of salary" broadly, ruling that any payment received by an employee from an employer constitutes taxable salary income, regardless of whether it relates to the employer's actual profits. The court emphasized that the Act provides an inclusive definition of "salary" and that taxation depends on receipt, not the purpose or utilization of the allowance. Appeals by Revenue were allowed; employee appeals were dismissed. en-us Tue, 29 Feb 2000 00:00:00 +0530 Thu, 03 Jul 2025 17:24:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5788 The SC held that City Compensatory Allowance (CCA), Dearness Allowance (DA), and House Rent Allowance (HRA) are taxable income under Section 17 of the Income Tax Act, 1961. The court interpreted "profits in lieu of salary" broadly, ruling that any payment received by an employee from an employer constitutes taxable salary income, regardless of whether it relates to the employer's actual profits. The court emphasized that the Act provides an inclusive definition of "salary" and that taxation depends on receipt, not the purpose or utilization of the allowance. Appeals by Revenue were allowed; employee appeals were dismissed. Case-Laws Income Tax Tue, 29 Feb 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5788