1994 (8) TMI 18

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..... n T. C. No. 284 of 1979, under section 256(2) of the Income-tax Act, 1961, the Tribunal referred the following question for our opinion: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that on the merits and in view of the provisions of section 314 of the Companies Act, 1956, the enhancement of remuneration for the director is not .....

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..... submitted before us that the enhancement of remuneration though not proposed before the general body meeting held, was subsequently placed before the extraordinary general body meeting and approved. Therefore, according to learned counsel, it was only a technical mistake which can be condoned. Further, learned counsel also submitted that any infringement of the company law as contemplated under se .....

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..... d in the first meeting held after the enhancement was made, such enhancement of remuneration cannot be allowed as deduction under section 314 of the Companies Act. We have heard the rival contentions. The fact remains that the enhancement of remuneration to one of the directors was made and such enhancement was not placed before the first general body meeting. But it was placed before the extrao .....

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