https://www.taxtmi.com/caselaws?id=6354 A managing director's commission was held taxable as salary where the articles of association and appointment terms showed a contract of service under the company's control. The court treated the decisive inquiry as the true nature of the relationship, including the company's supervisory power, the managing director's duty to follow board decisions, limits on his authority, and the power to terminate the appointment for unsatisfactory conduct. A managing director may have a dual character, but where the contractual terms disclose employment rather than independent business activity, the remuneration is salary. The commission was therefore assessable under section 7 and not 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 A managing director's commission was held taxable as salary where the articles of association and appointment terms showed a contract of service under the company's control. The court treated the decisive inquiry as the true nature of the relationship, including the company's supervisory power, the managing director's duty to follow board decisions, limits on his authority, and the power to terminate the appointment for unsatisfactory conduct. A managing director may have a dual character, but where the contractual terms disclose employment rather than independent business activity, the remuneration is salary. The commission was therefore assessable under section 7 and not 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