https://www.taxtmi.com/caselaws?id=98926 Commission payable to a managing director is assessable as salary where the articles of association and appointment terms establish a contract of service rather than an independent agency. The decisive inquiry is the true relationship created by those terms; absence of day-to-day control is not conclusive. Board control over general management, mandatory implementation of board decisions, removal for lack of diligence or conduct against company interests, and supervisory powers of directors and shareholders indicate employment. The commission is therefore taxable as salary under section 7 of the Indian Income-tax Act, 1922, rather than business income under section 10. en-us Thu, 24 Aug 1972 00:00:00 +0530 Mon, 17 Nov 2014 17:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98926 Commission payable to a managing director is assessable as salary where the articles of association and appointment terms establish a contract of service rather than an independent agency. The decisive inquiry is the true relationship created by those terms; absence of day-to-day control is not conclusive. Board control over general management, mandatory implementation of board decisions, removal for lack of diligence or conduct against company interests, and supervisory powers of directors and shareholders indicate employment. The commission is therefore taxable as salary under section 7 of the Indian Income-tax Act, 1922, rather than business income under section 10. Case-Laws Income Tax Thu, 24 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98926