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PETITIONER: THE COMMISSIONER OF EXCESSPROFITS TAX, MADRAS
Vs.
RESPONDENT: N. M. RAYALOO IYER & SONS.
DATE OF JUDGMENT: 08/12/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1961 AIR 692 1961 SCR (3) 60
ACT: Excess Profits Tax-Deductions-Remuneration of managing agent-Percentage of net Profits less outgoings--Excess Profits tax, if included in outgoings-Construction of agreement-Commission paid to branch managers-Deduction when of 1922), ss. 10(2)(XV), 10(2)(x)-Excess Profits Tax Act, 1940 (15 of 1940), ss. 2(16), 19, 21, Sch. 1, cl. (12).
HEADNOTE: The respondents, a firm carrying on business in dyes and chemicals under the name and style of Colours Trading Com- pany, with their head office at Madurai and thirteen branch offices in different towns, were the chief representatives in South India of the products of the I. C. I., a manufacturing concern. M was employed as the General Manager of the respondents and by virtue of an agreement, he was to be paid remuneration at the rate of Rs. 3,000 per annum and 12-1/2% of the net profits of the company calculated by deducting from the gross profits of the business the salaries, wages and other outgoings. The branch offices were managed by local managers and assistant managers who were paid in addition to monthly salary, annual and s...