1979 (12) TMI 47

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....referred the following two questions for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was legally right in confirming the disallowance of the payment of sales tax of Rs. 14,036 pertaining to earlier years ? 2. Whether, on the facts and circumstances of the case, the Appellate Tribunal was justified in holding that the com....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....elevant assessment year. So far as the deduction of remuneration is concerned, that was disallowed as the ITO held that the remuneration paid was excessive, considering the fact that these employees were being paid handsome amounts by way of salary. On appeal, the AAC allowed deduction in respect of remuneration at an amount of Rs. 12,050 with the result that the addition under this head was scale....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r deduction of sales tax liability for earlier previous years during the relevant previous years. Coming now to the second question, it is undoubtedly true that the amount of remuneration or the salary paid to an employee has to be adjudged from the standpoint of business needs. But this does not give a handle to claim inflated and excessive amounts of remuneration which are not commensurate wi....