9911796707
TMI Blog1980 (10) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... total income on accrual basis. The assessee it may be stated is the Managing Director of K. R. Film Pvt. Ltd. Under the terms of the agreement he is entitled received the same was not taxable. However, the ITO held that the commission receivable by the managing director was in the nature of salary within the meaning of s. 17(1)(iv). Accordingly, he included the aforesaid sum of Rs. 1,51,600 as salary in the computation of the assessee's total income. 2. The CIT (A) has observed that the option to be assessed on cash basis of accrual basis is available in respect of income under the head "business or profession" and not under the head "Salary" that the company had described the salary and commission paid to the assessee as remuneration an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso. The Deptl. Rep. has, on the other band, strongly relied on the Supreme Court's decision in the case of Raghava Reddi and Another vs. CIT (I962) 44 ITR 720 and Ramprasad vs. CIT 86 ITR 122. Alternatively, it is contended that the fact that the amount on accunt of commission was credited to the assessee's account during the previous year shows that the amount was placed at the disposal of the assessee as he ws the Managing Director and, therefore, even on cash basis the amount will be taxable in the hands of the assessee for the year. Our attention is also invited to the fact that the company issued a certificate dt. 5th Jan., 1980 showing that the commission and salary paid to the assessee amounting to Rs. 1,55,800 during the previous y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wanted to do so. In other words, the amount of commission had been made available to him and, therefore, the mere fact that the assesses has not withdrawn the amount will not make material difference. Full facts are not before us and it is not unlikely that the assessee has one current account wherefrom withdrawals are made as and when necessary. If that be so, it may be a case of constructive receipt. Since, in our opinion, this aspect of the case, has not been examined, as the authorities below proceeded on the assumption that the remuneration received by the assessee was taxable under the head 'salary' we consider it fair and in the interest of justice that the matter should go back to the CIT (A) for consideration afresh, according to l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits in bank as unexplained. 8. The CIT (A) has dealt with this ground in para 3 of his order. For elaborate reasons given therein, he has allowed the assessee a benefit of Rs. 8,000 and thereby reduced the addition from Rs. 55,355 to Rs. 47,355 9. It is submitted before us by Shri Trivedi, ld. counsel for the assessee that the addition sustained can be reasonably attributed to the following three items. 1. Estimate of personal expenses at Rs. 30,000 as against Rs. 16,000 Rs. 14,000 2. Deposit in bank treated as unexplained. Rs. 23,500 3. Difference in the estimate of Agrl. Income. Rs. 10,000 As regards estimate of personal expenses, Shri Trivedi submits that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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