TaxTMI 
TaxTMI 
1977 (8) TMI 52
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....x Appellate Tribunal, Cuttack Bench, and the following common question has been referred to us for our opinion : "Whether, in the facts and circumstances of the case, the amount said to have been due to the assessee by way of remuneration qua managing director of M/s. Orient Engineering Works Private Ltd., Cuttack, in each of the three years in question was income of the assessee ?" The relevant....
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....fact that the board of directors had resolved not to permit any payment on account of continuous loss sustained by the company. The Income-tax Officer overruled the stand of the assessee and brought the amount into the net of taxation. Assessee's appeals before the Appellate Assistant Commissioner were dismissed and the Tribunal also upheld the taxability of the amounts. Assessee asked for a state....
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....ging director on account of continuous loss to the company in its business operation. In the face of the resolution of the board that the managing director shall not be paid his remuneration, the managing director was not entitled to draw the salary. The resolution of the board to write back the remuneration to the managing director meant that the provision in the balance-sheet was to stand delete....