https://www.taxtmi.com/caselaws?id=55598 Additional remuneration and rent-free accommodation perquisites for a managing director and whole-time director do not accrue in the accounting year unless the required Central Government approval is obtained within that year. The approval requirement operates as a condition precedent to the effectiveness of the remuneration increase and related appointment amendments, so a later sanction cannot create an accrued liability retrospectively. The distinction drawn from earlier Supreme Court authority was treated as immaterial because the governing provisions imposed the same restriction on legal effectiveness pending approval. The disallowance of the claimed deduction was therefore upheld. en-us Fri, 24 Sep 1982 00:00:00 +0530 Mon, 29 Nov 2010 09:24:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55598 Additional remuneration and rent-free accommodation perquisites for a managing director and whole-time director do not accrue in the accounting year unless the required Central Government approval is obtained within that year. The approval requirement operates as a condition precedent to the effectiveness of the remuneration increase and related appointment amendments, so a later sanction cannot create an accrued liability retrospectively. The distinction drawn from earlier Supreme Court authority was treated as immaterial because the governing provisions imposed the same restriction on legal effectiveness pending approval. The disallowance of the claimed deduction was therefore upheld. Case-Laws Income Tax Fri, 24 Sep 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55598