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TMI Blog2015 (4) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order dated 16.12.2011 (Annexure A-I), CIT(A)'s order dated 06.09.2012 (Annexure A-II) and ITAT's order dated 23.12.2013 (Annexure A-III), is allowed, in view of the averments made in the application, which are duly supported by an affidavit of the CIT. ITA No.382 of 2014 The present appeal, preferred by the Revenue, has been filed under Section 260A of the Income Tax Act, 1961 (for short, the 'Act'), against the order dated 23.12.2013 (Annexure A-III), passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B' Chandigarh (for short, the 'Tribunal') in ITA No.1252/Chd./2012, for the assessment year 2009-10. The Revenue has claimed the following questions of law for determination by thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to how he could contribute towards the direction in which the company could be taken. The fact that the turn-over of M/s SEL Manufacturing Company Ltd. was Rs. 590 crores while that of the assessee/firm was Rs. 48 crores, weighed with the AO whereby it came to the conclusion that the monthly taxable profits were Rs. 1.47 lacs while the salary paid to the said person was Rs. 2 lacs, which was more than the total profits of the firm, per month. Accordingly, the AO came to the conclusion that a salary of Rs. 50,000/- per month would be reasonable and the excess amount of salary, amounting to Rs. 18 lacs was disallowed under Section 40A(2) and added back to the income of the assessee. The CIT, vide order dated 06.09.2012 (Annexure A-II), r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any basis. The assessee, in its reply, had given justification of the salary and given the following reasons for the high salary being paid to Shri R.S.Saluja: "Sh. Ram Saran Saluja is aged about 68 years, who promoted the R.S.Saluja Group in 1969. He holds a bachelors degree in arts from Punjab University. He is the main person behind the establishment and growth of the RS Saluja Group (Group) and development. He has over 40 years of experience in the textile industry. He has started with a modest business to manufacture hosiery products and knitted fabrics catering to the domestic market. Over the years he has evolved as an integrated textile player with presence in all the value added segments, from yarn manufacturing, dyeing to manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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