1953 (5) TMI 31

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ess. 2. The assesses is the Managing Agent of the U. P. Glass Works Limited. His remuneration was fixed at 15 per cent, of the net profits or a monthly pay of ₹ 1,000/- whichever he would elect at the end of each year. The duties and powers of the assessee-respondent as Managing Agent are enumerated in Article 17 of the Articles of Association, which is printed at page 12 of the Statement of the Case. The Managing Agent under the said Article is given the right to manage the business of the company and to do all that may be necessary in connection with that business. In the year of account the assessee elected to receive his remuneration at 15 per cent, of the net profits. The Income Tax Officer treated this remuneration as b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erefore, be said to be a servant. 5. In one of our recent decisions in -- 'Inder-chand Hari Ram v. Commissioner of Income Tax, U. P., and C. P.', MANU/UP/0289/1952 : AIR 1952 All 706 (A) we discussed the distinction between a managing agent and a manager. We pointed out that a managing agent must be entitled as of right to the management of the affairs of the company, the right being granted by an agreement with the company; secondly, that a manager must always work subject to the control and direction of the directors whereas the control and direction of the directors over the managing agent may be modified by the terms of the agreement; and, thirdly, that a managing agent may be a person, a firm or a company, the manager ca .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... liance, was also placed on the fact that the Income Tax Officer had added the value of the rent-free quarters occupied by the assessee as income under the head 'salary'. The Tribunal after going into the facts and circumstances held that though the assessee was called a Managing Agent he was in fact the Chief Manager of the Company. 7. It is not possible for us in this case to say that there were no materials on which the Tribunal could come to the finding that the remuneration received by the assessee was salary. We cannot say that on the facts end circumstances pointed out by the Appellate Tribunal it was not possible for it to hold that the income was not income from business. This is our answer to the question referred to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X