https://www.taxtmi.com/caselaws?id=276844 Exemption under Notification No. 878-F applied only where remuneration was received for services, paid out of the business profits, and disallowed in the employer's assessment because of that mode of payment. The employer's deduction was rejected instead on the independent ground that the remuneration was excessive and not wholly and exclusively laid out for business purposes under the Income-tax Act, 1922. Since the disallowance did not arise from payment out of profits or a profit-linked character of the sum, the notification's conditions were not satisfied. The disallowed portion of the remuneration therefore remained taxable in the employee's hands. en-us Fri, 04 Dec 1959 00:00:00 +0530 Mon, 19 Nov 2018 13:08:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276844 Exemption under Notification No. 878-F applied only where remuneration was received for services, paid out of the business profits, and disallowed in the employer's assessment because of that mode of payment. The employer's deduction was rejected instead on the independent ground that the remuneration was excessive and not wholly and exclusively laid out for business purposes under the Income-tax Act, 1922. Since the disallowance did not arise from payment out of profits or a profit-linked character of the sum, the notification's conditions were not satisfied. The disallowed portion of the remuneration therefore remained taxable in the employee's hands. Case-Laws Income Tax Fri, 04 Dec 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276844