2019 (3) TMI 1403

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....Tribunal rejected the appeal of the Assessee for the Assessment Year 1999-2000 and held that the managerial remuneration for a sum of Rs. 9 lakhs is taxable in the hands of the Assessee in the present Assessment Year. The findings of the learned Tribunal in this regard are quoted below for ready reference:- "7. We have gone through the orders of the authorities below, the case laws cited and considered the arguments and find that the assessee has admitted to have maintained his accounts on mercantile basis. It is also a fact that the Company has made provision for payment of managerial salary of Rs. 9 lakhs during the year under consideration in its books of accounts. Thus it is clear that the income has accrued to the assessee dur....

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....ny, M/s. Pentafour Products Limited?; (2) Whether the Tribunal is correct in law in sustaining the action of the Lower authorities in taxing the 'managerial remuneration' on 'accrual basis' even though he facts placed on record including the subsequent events would nullify the theory of accrual for the purpose of taxation in the hands of the appellant?" 3. The learned counsel for the Appellant/Assessee Mr.S.Sridhar submitted before us that the Assessee was not maintaining his books of accounts on mercantile basis as noted by the learned Tribunal in the aforesaid paragraph No. 7 quoted above and since the Managerial remuneration in question was not received by the Assessee during the Assessment Year 1999-2000 in q....

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.... 6. Firstly, it is a matter of record and a finding on fact by the Tribunal that the Assessee has admitted to have maintained his accounts on mercantile basis and therefore any negation on this aspect could be verified only by the learned Tribunal. The finding on fact as recorded by the Tribunal, is binding on this Court. 7. Secondly, it appears that no such evidence or withdrawal of the managerial remuneration, which was debited by way of provisions in the books of accounts maintained by the Company appears to have been placed before the authorities below. Had it been so, the learned Tribunal as well as CIT (Appeals) were bound to take note of the same and the effect thereof on the taxability of the said managerial remuneration in the....