1998 (3) TMI 186

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....light of material placed before us and precedents relied upon. The assessee was appointed Managing Director of M/s. Upper Doab Sugar Mills Ltd. (now Sir Shadi Lal Enterprises Ltd.) with effect from15-1-1967on terms and conditions of the appointment, approved by the Company Law Board vide its letter No. 1(72)-CL-VIII/67 dated28-9-1967. Based on such terms and conditions company paid remuneration to the assessee in the financial years 1966-67 and 1967-68. 4. The Company Law Board vide its letter No. 2(20)/CL-VIII/68 dated 1-5-1968 restricted the monetary value of remuneration to Rs. 25,000 each in the event of losses to the company. 5. Pursuant to the aforesaid directions the following sums were recovered from the assessee on31-1-1969:-....

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....hat due to low profits, the company had to deduct Rs. 68,615 from the salary under the orders of Company Law Board, but the matter is still sub judice before the Delhi High Court. Therefore, salary income is taxed this year on due basis because the mater has not been yet finalised. Moreover, deductions relate to earlier years." 7. The assessee did not dispute the disallowance of deduction made in the assessment year 1969-70. The matter was decided by the Hon'ble Delhi High Court on15-4-1971. There was no further appeal. In view of the decision of the Hon'ble Delhi High Court and the finding of the Assessing Officer given in the asst. year 1969-70 the assessee claimed the amount in the asst. year 1972-73, i.e., the year under consideratio....

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....o the U.D.S. Mills. 12. It cannot be said that the word 'income' has been deployed in the abstract. Tax is exigible on income earned in reality. In examining any transaction and situation of this nature regard should be made to the reality and speciality of the situation rather than the purely theoretical or doctrinaire aspect of it. 13. Law and equity are two things which God hath joined together, but which man has put as under. Law is not a brooding omnipotence in the sky. It is a pragmatic tool of social order. Dehors the principles of justice law cannot survive. Justice should be done at any cost. This principle is enunciated in the well-known dictum of Roman Law:- Fiat Justitia Ruat Et Coelum (Justice should be done even if....