COMMISSIONER OF INCOME-TAX, KERALA AND COIMBATORE vs L. W. RUSSEL

The Supreme Court upheld the High Court's decision that the employer's contribution towards a deferred annuity scheme is not taxable under Section 7(1) of the Indian Income-tax Act, 1922. The Court clarified that a perquisite is only taxable if a vested interest in the amount accrues to the employee, which was not the case here as the interest was contingent upon reaching the age of superannuation. Therefore, the contributions made by the employer do not constitute a perquisite allowed to the employee or an amount due to him under the Act.