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2019 (3) TMI 1403 - HC - Income TaxAssessment of 'managerial remuneration' under the head 'salary' within the scope of sections 15 and 17 - taxing the 'managerial remuneration' on 'accrual basis' - salary due from an employer or a former employer whether paid or not - HELD THAT:- Assessee has admitted to have maintained his accounts on mercantile basis and therefore any negation on this aspect could be verified only by the learned Tribunal. The finding on fact as recorded by the Tribunal, is binding on this Court. It appears that no such evidence or withdrawal of the managerial remuneration, which was debited by way of provisions 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 'salary' actually received or accrued to the person concerned. We are of the clear opinion that the order of the Tribunal does not suffer from any legal infirmity and the Appeal of the Assessee deserves to be dismissed and the same is accordingly dismissed.- Decided against the Assessee and in favour of the Revenue.
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