COMMISSIONER OF INCOME TAX Vs. ARUN DUA

JUDGEMENT

(1.) The assessment relates to the asst. yr. 1967-68. The original assessee is dead now. His legal reversionary and legal heir is his representative. The assessee was an individual and was the Managing Director of American Refrigeration Co. Ltd. and he received a salary, commissions and certain other benefits according to the agreement between him and his employer. The terms of the agreement provided inter alia for the reappointment of Sri. B. S. Dua as the Managing Director of the company for a period not exceeding five years with effect from 8-4-1965 on a remuneration not exceeding the following :

(2.) The assessee appealed to the AAC, who agreed with the ITO. The assessee went up in appeal before the Tribunal. The Tribunal after considering the rival contentions observed, inter alia, as follows :

(3.) In view of the fact which we have mentioned hereinafter, we are of the opinion that the Tribunal was right in coming to its conclusion as it did, as indeed, it was the only possible conclusion. In view of the above facts, the question referred to this Court is, therefore, answered in the affirmative and in favour of the assessee.