LAWS(CAL)-1977-9-19

STYA PAUL Vs. COMMISSIONER OF INCOME TAX CENTRAL

Decided On September 30, 1977
STYA PAUL Appellant
V/S
COMMISSIONER OF INCOME-TAX (CENTRAL) Respondents

JUDGEMENT

(1.) This is a reference under Section 66(2) of the Indian I.T. Act, 1922, for the assessment year 1954-55, the previous year ending on 31st March, 1954.

(2.) The assessee is the managing director of Surrendra (Overseas) Pvt. Ltd. for life and of Amin Chand Pyarelal (Calcutta) Ltd. for 20 years. Since his remuneration as the managing director of these two companies has been taxed under the head "Salary" and as the appellate authorities have sustained it, we are now concerned with the following questions of law :

(3.) It may be noted here that the learned counsel appearing for both the parties ultimately agreed that our answer to question No. 2 should abide by our answer to question No. 1 and accordingly we have dealt with their arguments only on question No. 1 and have allowed the articles of association of both the companies to be kept on the record at their request.