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TMI Blog2018 (7) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed as income in the assessee’s hands provided the same was not recovered by the company. In the absence of any details or material to support the claim of recovery or adjustment in the books with regard to excess payment of salary, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the order of the Assessing Officer. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided against assessee - ITA No.278/Chny/2017 - - - Dated:- 8-6-2018 - SHRI N. R. S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Shri J. Prabhakar, CA For The Respondent : Shri Asish Tripathy, JCI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Limited revised the salary of the assessee at ₹ 27,76,011/- which was disclosed to the Department by way of revised return. 5. Shri J. Prabhakar, the Ld. representative for the assessee, further submitted that in the original round of litigation, this Tribunal remitted back the matter to the file of the Assessing Officer. In the remand proceeding, according to the Ld. representative, the Assessing Officer found that the assessee received ₹ 1,37,52,396/- from the company and the salary was revised as per the company law only after the financial year was completed. According to the Ld. representative, the Assessing Officer also found that as per Form 26AS statement, the receipt was shown as ₹ 1,37,52,396/-. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial available on record. It is not in dispute that the assessee had received ₹ 1,37,50,396/- towards salary which included perquisites of ₹ 17,50,776/-. The assessee now claims that due to the provisions of Companies Act, the company revised the salary of Managing Director and fixed ₹ 27,76,011/- which included perquisites of ₹ 4,47,011/-. The question arises for consideration is whether the amount paid by the company in contravention of the provisions of the Companies Act as salary, would be income of the assessee under the Income-tax Act? 8. We have carefully gone through the provisions of Section 5 of the Income-tax Act, 1961, which reads as follows:- SCOPE OF TOTAL INCOME 5. (1) Subject to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it has accrued or arisen or is deemed to have accrued or arisen to him shall not again be so included on the basis that it is received or deemed to be received by him in India. 9. In view of the above, whatever money is received by the assessee from whatever source or accrues or arises shall form part of total income of previous year. It is also to be remembered that all the money received by the assessee cannot be treated as income. The assessee should have a legal right to retain the money received. In case the assessee received the money as a trustee with an obligation to return the same to some other person, then such kind of money received cannot be construed as income of the assessee at all. Therefore, when the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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