1989 (3) TMI 107

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....elivered by S. S. SODHI J. -The assessee-company had been running a transport business which it was constrained to discontinue in 1948. The work done by it, thereafter, consisted of looking after and maintaining its assets, the sale of plots of land owned by it and income from rent and interest. With regard to the assessment year 1977-78, a controversy arose concerning the salary said to hav....

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....sallowed on the ground that it was being claimed in respect of earning of interest of Rs. 5,400, but the employee had no role to play in earning this income and, therefore, payment of salary could not be attributed wholly and exclusively for the purpose of earning income within the meaning of section 57(iii) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). It is this conclusion ....