https://www.taxtmi.com/caselaws?id=6354 Commission payable to a managing director is taxable as salary where the articles of association and appointment terms establish a contract of service. Company control and supervision, the obligation to implement board decisions, restricted powers under the articles, and removal for unsatisfactory conduct indicate that the managing director is not an independent agent carrying on business personally. The relevant test is whether the contractual relationship discloses employment, rather than whether day-to-day supervision occurs. Remuneration meeting this test is assessable as salary under section 7 of the Indian Income-tax Act, 1922, rather than as business income under section 10. en-us Fri, 28 Apr 1972 00:00:00 +0530 Mon, 19 Jan 2026 14:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6354 Commission payable to a managing director is taxable as salary where the articles of association and appointment terms establish a contract of service. Company control and supervision, the obligation to implement board decisions, restricted powers under the articles, and removal for unsatisfactory conduct indicate that the managing director is not an independent agent carrying on business personally. The relevant test is whether the contractual relationship discloses employment, rather than whether day-to-day supervision occurs. Remuneration meeting this test is assessable as salary under section 7 of the Indian Income-tax Act, 1922, rather than as business income under section 10. Case-Laws Income Tax Fri, 28 Apr 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6354