1979 (2) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as right in its view that the sum of Rs. 12,000 was assessable in the hands of the assessee (Adam Sahib) for the assessment year 1971-72 ? " The relevant facts are in a short compass. It is enough to mention the facts in the case of Abdul Rahiman as the facts in the case of Adam Sahib stand on the same footing. Abdul Rahiman was the managing director of A.R.T. Bus Service (P.) Ltd., Jayankondan. During the previous year ending December 31, 1970, the ITO considered that a sum of Rs. 24,000 had accrued to him as his salary. As he had not returned the amount the ITO brought it to tax. In doing so, the ITO relied on a resolution passed by the board of directors of the company on January 2, 1967, under which Abdul Rahiman was entitled to a remu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tary evidence to show that the assessee had irrevocably waived the right to receive the salary at any time before the close of the accounting period. " From the facts and from the findings of the Tribunal it is thus clear that the salary accrued to the respective assessees under the terms of the resolution dated January 2, 1967, and that there was actually no waiver as such by them before the accrual. The amounts were not taken by them because the company had suffered loss. The Tribunal's further finding was that there was a debt due by the company to the respective assessees which could have been enforced by them in view of the resolution which subsisted during the relevant year. There is no error in this conclusion. The question whether....