1971 (4) TMI 30

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....as referred the following question for the opinion of this court at the instance of the Commissioner of Income-tax : " Whether, on the facts and circumstances of the case, the Tribunal was correct in holding that the salary payment of Rs. 12,000 to Shri P. N. Suri was an expenditure incurred by the assessee wholly and exclusively for the purposes of earning share of profits and remuneration fro....

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....be the whole-time worker of the company at a remuneration to be paid out of his remuneration. Shri Raizada appointed one P.N. Suri to work as the assistant managing director and the whole of the remuneration which was to be received by him was paid to Shri P.N. Suri. The assessee contended that the sum of Rs. 12,000 paid to Shri P. N. Suri should not be included in its income. In the alternativ....

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....artner in the assessment of M/s. Standard & Co. and consequently clubbing it with the share income of Shri K.L. Raizada. It further held that the assessee was entitled to claim the deduction in respect of the amount of Rs. 12,000 paid to Shri P. N. Suri. In the result, it allowed the appeal and directed the deletion of a sum of Rs. 12,000 from the total income of the assessee. The Commissioner ....

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....i K.L. Raizada, the assessee, had to incur an expenditure of Rs. 1,000 per month in order to earn the amount of salary stipulated in clause (7). In this view of the matter, it held that a deduction of Rs. 12,000 in the assessment of the assessee, for the year under consideration, should be allowed. On the finding that the amount of Rs. 12,000 was spent by the assessee in order to earn the amount o....