1985 (8) TMI 32

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... delivered by GOKAL CHAND MITAL J.-M/s Amritsar Transport Co. (P.) Ltd., Amritsar (hereinafter called " the assessee "), was engaged in transport business during the assessment year 1970-71 relevant to the accounting period ending January 31, 1970. The assessee claimed that it had paid Rs. 12,000 as salary to Jagmohan Mehra and Rs. 13,200 to Manmohan Mehra, sons of Smt. Bimlawati, director of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. The excess salary was disallowed. The assessee's appeal remained unsuccessful before the Appellate Assistant Commissioner. However, on further appeal to the Tribunal, after upholding all the findings recorded by the Income-tax Officer on facts, it concluded that salary at the rate of Rs. 750 per month to each of the two persons was quite reasonable and the amount claimed in excess of the said a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at 1/4th of the total expenditure incurred by the assessee by way of entertainment was hit by the provisions of section 37(2A) of the Income-tax Act, 1961 ? " The counsel for the parties are agreed that the third question is covered by a Full Bench decision of this court in CIT v. Khem Chand Bahadur Chand [1981] 131 ITR 336, in favour of the Department and against the assessee and, therefore, t....