Supreme Court Weekly Round Up

EPF Contribution Payable On 'Basic Wages' Camouflaged As Allowances The Supreme Court held that, in order that the amount goes beyond the 'basic wages' for the purposes of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, it has to be shown by the employer that the workman concerned had become eligible to get this extra amount beyond the normal work which he was otherwise required to put in. Deduction Under Section 80HH Income Tax Act Should Be From 'Gross Profits & Gains' Instead Of 'Net Income' A three judges' bench of the Supreme Court held that deduction under Section 80HH of the Income Tax Act 1961 should be based on gross profits and income instead of the net income from profits and gains computed as per Sections 28 to 44B of the Act. Sale Of Minor's Property By Guardian Can Be Avoided Only By Filing Suit To Set Aside Deed Within Period Under Art.60 Limitation Act The Supreme Court held that a sale of minor's property by guardian can be avoided only by filing a suit to set aside the deed within the period of limitation prescribed under Article 60 of the Limitation Act, which is three years from the date of attaining majority by the minor. Prosecution Under Customs Act Not Barred In Regard To Antiquities Or Art Treasures The Supreme Courtheld that the prosecution under Sections 132 and 135 of the Customs Act, 1962, is not barred in regard to the antiquities or art treasures.The bench comprising Justice Ashok Bhushan and Justice KM Joseph, referring to provisions of both the enactments and explained the inter play between Customs Act, 1962 and Antiquities and Art Treasures Act, 1972 as follows: Patna HC Upheld A Conviction That Wasn't: SC Remands Case For Re-Hearing The Supreme Courtset aside a Patna High Court judgment that upheld a conviction that wasn't.While setting aside the High Court order qua all the accused, the bench observed: "It is a fundamental principle of law that an illegality committed by a Court cannot be allowed to be perpetuated against a person to a Lis merely because he did not bring such illegality to the notice of the Court and instead other person similarly placed in the Lis brought such illegality to the Court's notice and succeed in his challenge" Seniority Should Not Be Ignored In Appointment Of Army Commanders The Supreme Court observed that though the appointment of an Army Commander is made by selection, the criterion of seniority should not be ignored. SC Answers Reference On Scope Of Discretion To Impose Penalty Under SEBI Act A three judges' bench of the Supreme Court headed by Chief Justice of India Ranjan Gogoi answered a reference on the scope of discretion of adjudicating authority under Section 15J of the Securities and Exchange Board of India Act 1992 in relation to imposition of penalties.