1998 (3) TMI 186

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..... he assessee was appointed Managing Director of M/s. Upper Doab Sugar Mills Ltd. (now Sir Shadi Lal Enterprises Ltd.) with effect from15-1-1967on terms and conditions of the appointment, approved by the Company Law Board vide its letter No. 1(72)-CL-VIII/67 dated28-9-1967. Based on such terms and conditions company paid remuneration to the assessee in the financial years 1966-67 and 1967-68. 4. The Company Law Board vide its letter No. 2(20)/CL-VIII/68 dated 1-5-1968 restricted the monetary value of remuneration to Rs. 25,000 each in the event of losses to the company. 5. Pursuant to the aforesaid directions the following sums were recovered from the assessee on31-1-1969:- Rs. 25,002.44 - Excess remunerati .....

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..... ment year 1969-70, the claim was disallowed. When the claim was made on the basis of finality of the decision, Assessing Officer disallowed on the ground that the amount did not relate to the year under consideration. 9. It was argued that the claim is a sort of refund of previous year's income. it is not claim for deduction. Principles of equity requires that assessee should not be taxed on income which he did not earn. 10. Shri Digvijay Kumar, learned D.R. argued that no deduction other than the statutory and specific deductions as provided under section 17 of the income-tax Act, 1961 could be allowed to the assessee from the salary income. It was also argued that there is no equity in taxation. 11. During the year under considerati .....

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..... or sophisticated abstraction. The primary object of the Government is to secure justice. Remota justitia, quid sint, regna nisi, magna latrocinia, saidSt. Augustinein the 5th century and it is just as true today. The expression looses its tersness in translation, but the question whichSt. Augustineasked in modern language was whether a Government which did not have justice as its objects was really anything more than a venture in large scale gangsterism. There cannot be anything of greater consequence than to keep the stream of justice clear and unpolluted. 14. The income-tax is a tax on income. But the word 'income' is a dark cat in the bag of the Income-tax code. There is no exhaustive definition of the word 'income'. The Act prescribes .....

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