1981 (7) TMI 142

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....ee Sri U. Mohan Rao is on the question of quantum of standard deduction admissible to the assessee in computing his income under the head 'Salaries'. The relevant facts are that the assessee was an employee in the capacity of Managing Director in two companies, namely, (1) Cutfast Abrasive Tools Private Ltd. and (2) Cutfast Bonded Abrasives Private Ltd. receiving remuneration from each of the comp....

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....ontention and directed the deduction as claimed by the assessee. The department being aggrieved is in appeal before us. 2. The contention of the ld. departmental representative before us is that in view of the fact that the charge of income derived by way of salary is under the head 'Salaries' as defined in s. 14 and the standard deduction has to be made in computing the income chargeable under....

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....thereafter. The assessee supports the order of the CIT (A). 3. Having considered the facts and the contentions, we are satisfied that there is no merit in the department's appeal. We do not see how the expression 'salaries', being a plural of 'salary' supports the assessee's stand. All that s. 14 and the connected sections say, is that salaries is one of the headings or classification of the in....

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....to 'salary'. It is perhaps for this reason that the expression 'salary' has been used as a heading for the charge. The ld. departmental representative, however, advanced ingenious argument to say that the definition of 'salary' u/s 17 should comprehend the aggregate of all the items enumerated therein. Since the expression used there is 'includes' this argument apparently attractive, does not stan....