9911796707
TMI Blog1996 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Regina Nagesh did render service to her husband, Sri C.K. Nagesh, as secretary is based on valid and relevant materials and is a reasonable view to take on the facts of the case ?" T.C. Nos. 678 to 680 of 1984 : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to the deduction of Rs. 10,440, Rs. 7,200 and Rs. 3,600 being the salary paid to Mrs. Regina Nagesh, while computing the income of the asst. yrs. 1973-74, 1974-75 and 1975-76 ?" 2. The assessee is a partnership firm engaged in the business of distribution and exploitation of motion pictures, production of cine-films, exploitation of talents of film stars and such other business that may be suita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esh as an expenditure in computing the total income of the assessee. 3. Learned standing counsel for the Department submitted that the agreement dt. 20th April, 1971, is a device to divert the income of Mr. Nagesh among different persons. Therefore, the income shown by the firm is, in reality, the income of Mr. Nagesh and hence it has to be assessed in the hands of Mr. Nagesh. It was further submitted that no evidence was produced by the assessee to show whether any actual service was rendered by Mrs. Regina Nagesh as secretary to her husband, Mr. Nagesh. According to learned standing counsel, when the Tribunal pointed out that the authorities below could have examined the secretary, the Tribunal could have remanded the matter for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry was paid. 5. We have heard both learned standing counsel for the Department and learned counsel for the assessee. The fact remains that the assessee is a partnership firm. The assessee entered into an agreement with Mr. Nagesh dt. 20th April, 1971. According to the said agreement, the film should provide a secretary to Mr. Nagesh. The firm is doing business in firm production, distribution and exploitation of talents of cine stars. Accordingly, the firm appointed Mrs. Regina Nagesh as the secretary and paid her a salary of Rs. 1,520 per month. According to the Department, the agreement is only a device to divert the income of Nagesh so as to avoid higher tax liability. But this was not established by the Department. According to the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the AAC never made any complaint with regard to the letter said to have been addressed to him by the assessee on 20th Jan., 1976. The Tribunal, being the highest fact-finding authority, came to the conclusion on the basis of the letter dt. 20th Jan., 1976, that services were really rendered by Mrs. Regina Nagesh to Mr. Nagesh. In such circumstances, we consider that no further interference need be made with the fact findings by the Tribunal on this aspect. When the secretary was appointed in pursuance of the agreement and when there is evidence on record to show that services were rendered by Mrs. Regina Nagesh to Mr. Nagesh, there cannot be any impediment for the allowance of the salary payment made by the firm to the secretary. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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