9911796707
TMI Blog2019 (3) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in the books of accounts maintained by the Company appears to have been placed before the authorities below. Had it been so, the Tribunal as well as CIT (Appeals) were bound to take note of the same and the effect thereof on the taxability of the said managerial remuneration in the hands of the present Assessee, could have been discussed by them. Going by the facts that the Company for which the Assessee was the Managing Director during the period had made a provision for managerial remuneration of ₹ 9 lakhs to be paid to the Assessee creates an obligation on the present Assessee to bear the tax liability in respect of the same, in view of the definition of the word 'salary' under Section 15 of the Act which includes both 'salar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration in its books of accounts. Thus it is clear that the income has accrued to the assessee during the financial year ending on 31.3.1999 even though the income is not paid to the assessee as salary, the fact of accrual of income is not changed. Since the subsequent event can not reverse the process of accrual of income during the period prior to the date of such Resolution, which is always prospective and not retrospective, as held in the case of E.M.Raghunathan vs. CIT cited supra, therefore in our considered view, the assessing officer is legally correct in assessing ₹ 9 lakhs as managerial remuneration from M/s. PPL as income of the assessee for the year under consideration and the learned Commissioner of Income-tax (Appeals) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neration in question was not received by the Assessee during the Assessment Year 1999-2000 in question and he was not liable to be taxed in respect of the said remuneration in his hands for the said Assessment year. He also submitted that the Company of which the petitioner/Managing Director, namely, M/s. Pentafour Products Limited was in financial difficulty and withdrew the managerial remuneration also by way of a Resolution. Therefore, the Assessee could not have been taxed with regard to the same. 4. On the other hand, the learned counsel for the Revenue supported the impugned order of the learned Tribunal and submitted that no such Resolution of the Company for withdrawal of the managerial remuneration was filed by the Assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke note of the same and the effect thereof on the taxability of the said managerial remuneration in the hands of the present Assessee, could have been discussed by them. 8. Going by the facts that the Company for which the Assessee was the Managing Director during the period had made a provision for managerial remuneration of ₹ 9 lakhs to be paid to the Assessee creates an obligation on the present Assessee to bear the tax liability in respect of the same, in view of the definition of the word 'salary' under Section 15 of the Act which includes both 'salary' actually received or accrued to the person concerned. 9. In view of the above, we are of the clear opinion that the order of the learned Tribunal does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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