1991 (1) TMI 6

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..... Act, 1961, for the assessment year 1980-81, the following question has been referred to this court : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the expenses relating to salary and wages and rent would have to be allowed in full and thereby directing the Commissioner of Income-tax (Appeals) to compute the deduction of thes .....

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..... ommissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) dismissed the appeal of the assessee by confirming the order of the Income-tax Officer. As against the order of the Commissioner of Income-tax (Appeals) as aforesaid, the assessee preferred an appeal before the Appellate Tribunal. The Tribunal held that the two items of expenditure as aforesaid have to be allowed in ful .....

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..... situate. In our view, when a company goes into liquidation, the expenditure which is incurred towards salary and wages of the staff and the rent would be an expenditure incurred wholly and exclusively for the purpose of earning income assessable under the head "Other sources". It does not appear from the facts which have been stated by the Tribunal that how many of its staff were engaged by the c .....

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