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2018 (7) TMI 1399 - AT - Income TaxAddition under the head “Income from Salary” - In this case, what was paid to the assessee is a salary in the capacity as Managing Director of the company - Held that:- Merely because the payment was contrary to the provisions of Companies Act, this Tribunal is of the considered opinion that the Income-tax Act, being a special provision, the Companies Act cannot override the Income-tax Act. The Income-tax Act will override the Companies Act. Even the illegal payment or the payment received by the assessee contrary to the provisions of Companies Act by way of salary has to be assessed as income in the assessee’s hands provided the same was not recovered by the company. In the absence of any details or material to support the claim of recovery or adjustment in the books with regard to excess payment of salary, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly confirmed the order of the Assessing Officer. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided against assessee
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