Dismissing the appeal of the assessee the Tribunal held that; what was paid to the assessee was a salary in the capacity as managing director of the company. Therefore at the time of payment the assessee had all the right to retain the money. Subsequently, the company revised the salary on the basis of the provisions of the Companies Act restricting the salary to 5 per cent. of the net profits of the company. The Income-tax Act, 1961 will override the Companies Act. Even the illegal payment or the payment received by the assessee contrary to the provisions of the Companies Act by way of salary has to be assessed as income in the assessee’s hands provided the income was not recovered by the company. (AY. 2009-10)