LAKSHMINARAYAN RAM GOPALAND SON LTD. vs THE GOVERNMENT OF HYDERABAD.

The Supreme Court clarified the distinction between the roles of master and servant versus principal and agent, emphasizing that a principal directs the work while a master controls both the work and its execution. The Court held that the appellants were agents of Dewan Bahadur Ram Gopal Mills Ltd., managing the business under the Directors' general supervision, thus establishing their role as agents rather than mere servants. Consequently, their remuneration was deemed income from business under the Hyderabad Excess Profits Tax Regulation, affirming the assessment made against them.