2001 (9) TMI 19 - HC - Income Tax

Business Expenditure - The dispute relates to the year 1989-90. The assessee showed a gross turnover of Rs.38,47,829. A gross profit of Rs.8,00,256 was declared. After claiming deductions, a total income of Rs.79,200 was shown in the return. The Assessing Officer made certain additions, One of these related to the disallowance of an amount of Rs.18,000 alleged to have been paid as salary to Smt. Nisha Jain and Smt. Kanchan Jain. It was claimed by the assessee that a salary of Rs.750 per month was being paid to each of the two ladies. On this basis, a deduction of Rs.18,000 was claimed. After hearing learned counsel we find that the two ladies were examined by the Assessing Officer. Their statements were recorded. The findings are based on appreciation of evidence. The factum of register is only one of the circumstances. Even if that is ignored, the findings are sustainable on the other evidence on the file of the case. It has been found as a fact that no evidence regarding the services rendered by the two ladies has been produced. Thus, the deduction has been disallowed. In view of the above, we find no ground to interfere.

Summary

The High Court dismissed the appeal regarding the disallowance of claimed salary deductions for two daughters-in-law of the assessee due to lack of evidence of services rendered. The court found no substantial question of law to interfere with the decision. The appeal was dismissed in limine.