https://www.taxtmi.com/caselaws?id=20264 Managing director remuneration is assessable under the head "Salary" where the company's articles of association place the managing director under the board's control and supervision and permit removal by shareholder resolution. These features establish an employer-employee, or master-servant, relationship, distinguishing remuneration earned in employment from income taxable under "Other sources". Applying the control-and-supervision test recognised in Ram Prashad v. CIT, the High Court treated the board's supervisory authority and the removal power as decisive indicators of employment. The reference was answered in favour of the assessee, confirming salary assessment of the remuneration. en-us Tue, 21 Jul 1992 00:00:00 +0530 Thu, 12 Nov 2009 18:01:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20264 Managing director remuneration is assessable under the head "Salary" where the company's articles of association place the managing director under the board's control and supervision and permit removal by shareholder resolution. These features establish an employer-employee, or master-servant, relationship, distinguishing remuneration earned in employment from income taxable under "Other sources". Applying the control-and-supervision test recognised in Ram Prashad v. CIT, the High Court treated the board's supervisory authority and the removal power as decisive indicators of employment. The reference was answered in favour of the assessee, confirming salary assessment of the remuneration. Case-Laws Income Tax Tue, 21 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20264