TMI Blog1983 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The AAC has confirmed that decision. The reasons for the AACs' decision are that (i) the assessee was entitled to receive not only remuneration but also bonus and was allowed to participate in the profits of the company; (ii) the articles of the company provided that the Director could vest in the Managing Director such of their powers as they managing think fit; and (iii) there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded in s. 17 which defines salary. The assessee's Advocate had pointed out that the standard deduction had been granted to the assessee for the earlier assessment year. To this the ld. departmental representative replied that every assessment year is separate and for this year the assessee had not claimed the said deduction from the salary. 4. We have to consider the question whether the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the employees is a person who is under the direct supervision of the employer. Clause 33 of the articles specified that the powers of the Directors may be vested in Managing Director upon such terms and conditions and subject to such restrictions the Directors may think expedient. Therefore, although the powers of the Directors may be vested in the Managing Director, they are to be exercised s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supervisory control is exercised by the latter in respect of the work entrusted to the former." It held that the Managing Directors were employees of the company. Applying that decision we hold that the assessee was an employee of the company and entitled to claim Managing Director's remuneration received by him from the company as salary. The appeal is allowed. - - TaxTMI - TMITax - Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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