2002 (2) TMI 20

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....hether the provisions of section 40A(2)(b) are applicable in the present matter where the salaries/payments were made to the close relatives of partners of the assessee-firm ? 2. Whether the Assessing Officer is bound to admit the entries made in the cash books even if their genuineness is doubted and further is it necessary for the Assessing Officer to first reject the cash books, purchase vou....

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....r the law declared by the Supreme Court in a reported case Workmen of Associated Rubber Industry Ltd. v. Associated Rubber Industry Ltd. [1986] 157 ITR 77 and McDowell and Co. Ltd. v. CTO [1985] 154 ITR 148 (SC) does not have important bearing in the present case ?" The assessment year involved is 1990-91. The assessee is a registered firm, deriving its income from building trucks/dumpers on hi....

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.... Tribunal that salary paid to Sumati and Padam Kumar is for the purpose of business and accounted for it cannot be said unreasonable in the facts and circumstances of the case. The next issue relates to whether the Tribunal has wrongly allowed depreciation on the new bodies of the dumpers to the tune of Rs. 2,13,000. Learned counsel submits that whether the new bodies were built up of the dumpe....

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....disallowed Rs. 1,16,000 against these expenses on estimate basis comparing this net profit of this year with the earlier year. In appeal the Tribunal has considered the fact that without rejecting the books of account and specially when the statements of six per sons were recorded regarding payment of salary who confirmed that the payment has been made to them on account of salary merely on the ba....