On appeal, the Tribunal held that, any salary due from an employer or a former employer to an assessee is taxable on accrual basis whether the salary is paid or not. \u00a0Though a higher amount of salary was approved by the Company, the salary was not paid to the director as the necessary approval from the Central Government was not received. Hence, no such excess salary can be subject to tax merely because a higher amount was paid in the earlier years as that did not lead to the presumption that the same amount should have been paid in the succeeding year also.\u00a0 If the company had claimed salary of Rs.\u20022,10,00,004 only as deduction, there was no reason to tax any amount in excess of such amount. \u00a0However, this factual aspect required verification by the Assessing Officer. \u00a0Accordingly, for the limited purposes of verification of the aspect, the issue was restored to the Assessing Officer. (AY.2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 15 : Salaries \u2014 Director Of Company \u2014 Assessable on accrual basis and not on receipt basis \u2014 Even if higher salary proposed by employer Not approved By Central Government \u2014 AO to examine factually if what is claimed by employer as deduction has been offered to tax by Director.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12513","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3fP","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12513"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12513\/revisions"}],"predecessor-version":[{"id":12514,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12513\/revisions\/12514"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}