C.I.T.,GUJARAT-I vs NAVNIT LAL SAKAR LAL — C.A. No. 7723/1997

Case Summary CIT, Gujarat-I v. Navnit Lal Sakar Lal (2000) The Supreme Court held that Rs. 26,221 spent by Sarangpur Mills to purchase deferred annuity policies for Managing Directors was taxable income under the head "Salaries." The Court rejected the Tribunal and High Court's view that the amounts were diverted before accruing to the Directors, interpreting the Board resolutions to show commission had accrued to the Directors before being spent on annuity policies—making the amounts includible in their taxable income despite the Directors having no vested rights in the policies until retirement. This case analysis is maintained by casestatus.in based on publicly available court records.