1998 (8) TMI 26 - HC - Income Tax

Summary

The High Court of Madras ruled against the assessee in a case involving payment to a managing director for the assessment year 1979-80. The court upheld the disallowance of the amount exceeding Rs. 72,000 and determined that the commission paid to the managing director should be included in the calculation of remuneration. The court also decided that the maximum permissible limit of expenditure on remuneration and perquisites cannot exceed Rs. 72,000 without considering the reasonableness in relation to business needs. Additionally, the court ruled that surtax liability cannot be deducted while computing total income based on a Supreme Court decision.