TMI Blog2002 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was right in its wisdom to allow the claim of Rs. 2,13,000 on account of depreciation in new bodies even if the bills for the same were not produced and in spite of it expenditure written on letter head that too without any sales tax number on it was produced ? Whether the Income-tax Appellate Tribunal was right in its wisdom to allow deletion of disallowance of Rs. 1,16,000 out of salary Rs. 28,341 out of diesel and oil consumption ? - - - - - Dated:- 8-2-2002 - Judge(s) : Y. R. MEENA., A. C. GOYAL. JUDGMENT The appeal was admitted in terms of the following questions "1. Whether 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugust 27, 1990. According to the Assessing Officer the books of account are not supported by bills and vouchers and even salary has been paid to close relations, which is hit by the provisions of section 4OA(2)(b) of the Act. Question No. 1 relates that was disallowed by the Assessing Officer, therefore, the salary paid to Shri Sumati Kumar and Padam Kumar, i.e., their relatives and the salary paid to them is unreasonable. The finding of the Tribunal is that the salary has been paid for work which Shri Sumati and Shri Padam Kumar have done for the assessee. Though they are relatives Rs. 1,000 per month to a person for the work they have done in our view cannot be said to be unreasonable. Otherwise, also that finding of fact of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho confirmed that the payment has been made to them on account of salary merely on the basis of net profit no disallowance be made, in para. 6, the Tribunal has concluded its finding. When the employees had filed affidavits confirming the payment of salary, they have given the details of dumpers and trucks on which they are working. Similarly, that the net profit is less than in the earlier year cannot be made the base for any disallowance on account of the salary paid to the employees. No interference is called for in the order of Tribunal on this account also. Similarly, the Assessing Officer has disallowed Rs. 28,341 in diesel and oil account. Whether the diesel and oil were consumed in the trucks and dumpers of the assessee when th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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