C.I.T.,GUJARAT-I vs NAVNIT LAL SAKAR LAL

The Supreme Court addressed the inclusion of Rs. 26,221 in the income of the Managing Directors of Sarangpur Mills under the Income Tax Act. The Court held that the amount paid for the Deferred Annuity Policy was not part of the remuneration for the assessment year 1973-74, as it was not received by the assessee in the relevant financial year. The judgment clarified the interpretation of remuneration under the Income Tax Act, emphasizing that the payment did not constitute income chargeable under the head Salaries.