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TMI Blog1976 (12) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... J.--The assessee is a director of M/s. Seth Oil Mills Private Ltd. During the accounting year April 1, 1967, to March 31, 1968, he did not draw any remuneration from the company though he was entitled to remuneration at the rate of Rs.2,000 per month. On June 20, 1968, the company passed the following resolution: "Resolved that the monthly remuneration of the directors may be reduced to Rs. 3,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remuneration was overruled by the Income-tax Officer on the ground that such giving up was not at any time during the relevant accounting year. The order of assessment made by the Income-tax Officer was confirmed by the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal. The following question has been referred to us for our opinion: "Whether, on the facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake effect from July 1, 1967, on which date commenced the accounting year of the company. The resolution itself was passed on June 20, 1968, and in the case of the other two directors, it was admittedly effective from January 1, 1968 only. The revenue was, therefore, justified in holding that the resolution became effective from January 1, 1968, in the case of the assessee also. The learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunals that the remuneration due to the assessee was salary and was taxable as such. The question whether remuneration paid to a director is or is not salary is not an abstract question of law which could be answered. It depends on various circumstances such as the nature of the duties performed by the director of the company, the nature of the agreement, if any, between the individual director ..... X X X X Extracts X X X X X X X X Extracts X X X X
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