https://www.taxtmi.com/caselaws?id=37816 Disallowance of salaries paid to director-employees was not justified on the stated facts, because the earlier basis for the adjustment had already been found unsustainable and the matter required reconsideration on the correct material. Expenditure incurred to procure shareholder proxies for a managed company's meeting was held to be revenue in nature, as it was directed to preserving and continuing an existing managing agency and improving the yield from an existing source of income, not acquiring a new source or capital asset. The reference was thus answered partly against the Revenue and partly in favour of the assessee, with the salary issue remitted for reconsideration and the proxy-related expenditure allowed as a deduction. en-us Mon, 30 Jan 1978 00:00:00 +0530 Thu, 01 Apr 2010 12:23:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37816 Disallowance of salaries paid to director-employees was not justified on the stated facts, because the earlier basis for the adjustment had already been found unsustainable and the matter required reconsideration on the correct material. Expenditure incurred to procure shareholder proxies for a managed company's meeting was held to be revenue in nature, as it was directed to preserving and continuing an existing managing agency and improving the yield from an existing source of income, not acquiring a new source or capital asset. The reference was thus answered partly against the Revenue and partly in favour of the assessee, with the salary issue remitted for reconsideration and the proxy-related expenditure allowed as a deduction. Case-Laws Income Tax Mon, 30 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37816