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1965 (3) TMI 17 - SUPREME COURTWhether the tribunal was not justified in reducing the remuneration of the managing director from ₹ 3,500 per month to ₹ 2,500 per month? Whether the tribunal was wrong in not allowing a sum of ₹ 84,000 as further income-tax under section 23A of the Indian Income-tax Act? Whether the tribunal was wrong in allowing rehabilitation at rupees one lakh only and that a much larger sum was properly allowable as rehabilitation? Held that:- The question whether the tribunal can reduce the remuneration which is based on a written agreement binding on the employer is therefore left open to be decided in a case where it will matter In the present case the evidence on behalf of the appellant shows that no income-tax was in fact levied on the appellant under section 23A of the Income-tax Act. In these circumstances the tribunal was right in disallowing any claim for income-tax under section 23A of the Income-tax Act. The tribunal was right in holding the appellant to its contention that it required rupees one lakh per year as rehabilitation for the four years 1957-60. It is not disputed that if rehabilitation is only allowed at rupees one lakh, the order of the tribunal granting 10 per centum of the basic earnings for the whole year as bonus cannot be assailed. Appeal dismissed.
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