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TMI Blog1967 (3) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... icers to administer its affairs. By resolution dated July 9, 1952, the remuneration of each of the directors of the assessee was increased with retrospective effect from April 1, 1952, by Rs. 1,000 per month and of two out of the three officers by Rs. 500 per month and of the remaining officer by Rs. 750 per month. In the year 1953, the remuneration of each of the directors was increased by Rs. 500 per month and of each of the officers by Rs. 250 per month. In proceedings for assessment of income for the years 1953-54 and 1954-55 the Income-tax Officer called upon the assessee to show cause why the increase in the remuneration of the directors and officers should not be disallowed in the computation of the taxable income of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd it was only in the year 1953-54 that the directors received Rs. 48,000 as remuneration. The Tribunal also directed that in regard to each employee increase in salary not exceeding Rs. 3,000 per annum as compared to the preceding year's assessment be allowed as a permissible deduction. The Tribunal gave no reasons for disallowing the balance of the salary paid to the three officers. The Tribunal submitted the following question for determination of the High Court of Bombay : "Whether, on the facts and in the circumstances of the case, the Tribunal acted without evidence in disallowing Rs. 30,000 (Rupees thirty thousand) ?" The High Court was of the view that the Tribunal acted without evidence in partially disallowing the increase i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch orders thereon as it thinks fit" in section 33(4) of the Income-tax Act, 1922, is not arbitrary: the expression is intended to define the jurisdiction of the Tribunal to deal with and determine questions which arise out of the subject-matter of the appeal in the light of the evidence, and consistently with the justice of the case. In the hierarchy of authorities the Appellate Tribunal is the final fact-finding body : its decisions on questions of fact are not liable to be questioned before the High Court. The nature of the jurisdiction predicates that the Tribunal will approach and decide the case in a judicial spirit and for that purpose it must indicate the disputed questions before it with evidence pro and con and record its reasons i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be adjudged from the point of view of the businessman and not of the revenue. The Income-tax Officer was of the view that there was no adequate increase in the earnings of the assessee, for the increase in remuneration was not reflected in the increase in profits of the assessee and that it appeared that, as compared to the previous years, the business profits disclosed by the assessee had fallen by Rs. 2 lakhs and, therefore, the increase in expenditure could not be justified as laid out wholly and necessarily for the purposes of the business. But an employer in fixing the remuneration of his employees is entitled to consider the extent of his business, the nature of the duties to be performed, and the special aptitude of the employe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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