https://www.taxtmi.com/caselaws?id=98926 Commission payable to a managing director was held to be salary where the articles of association and appointment terms showed a contract of service rather than an independent agency. The decisive test was the true nature of the relationship created by the governing documents: the managing director was subject to the board's control, bound to implement board decisions, and removable for lack of diligence or acting against company interests. The absence of day-to-day supervision was not conclusive. On these features, the receipt fell within salary under section 7 of the Indian Income-tax Act, 1922, and not 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 was held to be salary where the articles of association and appointment terms showed a contract of service rather than an independent agency. The decisive test was the true nature of the relationship created by the governing documents: the managing director was subject to the board's control, bound to implement board decisions, and removable for lack of diligence or acting against company interests. The absence of day-to-day supervision was not conclusive. On these features, the receipt fell within salary under section 7 of the Indian Income-tax Act, 1922, and not business income under section 10. Case-Laws Income Tax Thu, 24 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98926