https://www.taxtmi.com/caselaws?id=11822 The court determined the reasonableness of salary increases under section 40A(2) of the Income-tax Act. One salary increase at 12.5% was deemed reasonable, while increases of 20% and 80% were considered unreasonable due to lack of evidence. The court highlighted that disproportionate increases must be justified by exceptional circumstances. The judgment favored the assessee for one salary increase and the Revenue for the other two, with each party bearing their own costs. en-us Tue, 13 May 2003 00:00:00 +0530 Tue, 09 Feb 2010 17:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11822 The court determined the reasonableness of salary increases under section 40A(2) of the Income-tax Act. One salary increase at 12.5% was deemed reasonable, while increases of 20% and 80% were considered unreasonable due to lack of evidence. The court highlighted that disproportionate increases must be justified by exceptional circumstances. The judgment favored the assessee for one salary increase and the Revenue for the other two, with each party bearing their own costs. Case-Laws Income Tax Tue, 13 May 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11822