Salary disallowance to relatives raised no substantial question of law where evidence failed to prove services rendered.

Disallowance of salary paid to the assessee's relatives was sustained because the authorities had examined the alleged employees, recorded their statements, and found no proof that services were rendered. The absence of a register was only one factor in the evidentiary assessment, and the close relationship with the assessee further supported the finding that the claim lacked a proper factual basis. On those concurrent findings of fact, no substantial question of law arose under Section 260A, and interference was declined.

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Issues: Whether the disallowance of salary paid to the assessee's relatives gave rise to a substantial question of law warranting interference in an appeal under Section 260A of the Income-tax Act, 1961.

Analysis: The authorities had examined the two ladies and recorded their statements. The disallowance was based on appreciation of evidence and surrounding circumstances, including the absence of proof regarding services rendered. The absence of a register was only one circumstance and did not undermine the concurrent factual findings. The relationship of the alleged employees with the assessee also supported the conclusion that the claim lacked evidentiary foundation.

Conclusion: No substantial question of law arose. The disallowance was upheld and interference was declined.

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