V.RAMAKRISHNAN Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Assessee has filed this Appeal under Section 260-A of the Act raising the following purported substantial questions of law arising from the order of the learned Income Tax Appellate Tribunal dated 13.06.2008 whereby the learned Tribunal rejected the appeal of the Assessee for the Assessment Year 1999-2000 and held that the managerial remuneration for a sum of Rs.9 lakhs is taxable in the hands of the Assessee in the present Assessment Year. The findings of the learned Tribunal in this regard are quoted below for ready reference:-

(2.) The questions of law on which the present Appeal was admitted by the Co-ordinate Bench of this Court on 05.02.2009 are also quoted below for ready reference:- "(1). Whether the Appellate Tribunal is correct in law in sustaining the assessment of 'managerial remuneration' under the head 'salary' within the scope of sections 15 and 17 of the Act based on the provision for the said remuneration charged to in the accounts prepared in the hands of the company, M/s. Pentafour Products Limited?;

(3.) The learned counsel for the Appellant/Assessee Mr.S.Sridhar submitted before us that the Assessee was not maintaining his books of accounts on mercantile basis as noted by the learned Tribunal in the aforesaid paragraph No. 7 quoted above and since the Managerial remuneration in question was not received by the Assessee during the Assessment Year 1999-2000 in question and he was not liable to be taxed in respect of the said remuneration in his hands for the said Assessment year. He also submitted that the Company of which the petitioner/Managing Director, namely, M/s. Pentafour Products Limited was in financial difficulty and withdrew the managerial remuneration also by way of a Resolution. Therefore, the Assessee could not have been taxed with regard to the same.