2002 (9) TMI 26 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in determining the reasonableness of salary paid to the sons of the applicant, Sri Anoop Kumar Khandewal and Sh. Alok Kumar Khandelwal, at Rs. 3,000 and Rs. 2,500 per month, respectively, by comparing their salaries with that of the salary of a peon working with the assessee-applicant? - assessee claimed expenditure of Rs. 1,32,000 on account of payment of salary to these two sons. - we answer the question in the affirmative, i.e., in favour of the Revenue and against the assessee.

Summary

The High Court of Rajasthan ruled on the reasonableness of salaries paid to the sons of an individual deriving income from various sources. The Tribunal's decision to determine the salaries was upheld, and the court ruled in favor of the Revenue against the assessee.