1995 (9) TMI 4 - SC - Income Tax

Assessee managing agent got car from company - Question was whether the said benefit can be included in the income of the managing agent by virtue of sub-clause (iii) in the definition of income u/s 2(6) - The finding is that the assessee herein did not hold a substantial interest in the relevant company. - Hence impugned sub-clause cannot be applied to the case of assessee - Once this is so no further question arises

Summary

The Supreme Court dismissed the Revenue's appeals against the Madras High Court decision. The issue was whether a managing agent's individual assessment could include a disallowed amount from the company's assessment. The Court found the managing agent did not have a substantial interest in the company, so the addition was not justified. The appeals were dismissed with no costs.