KHAN CARPETS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law has been referred for opinion to this court: 'Whether the finding of the Income -tax Appellate Tribunal that the increase of only Rs. 100 per month in the salaries of three employees, namely, Shri Ali Ahmed, Mohd. Ali and Ajaz Ahmad, shall be reasonable or is arbitrary and in ignorance of the conditions laid down in Section 40A(2) of the Income -tax Act ?'

(2.) THE above question arises out of the facts that the applicant is a registered firm. It employed various persons in its firm for carrying out its activities. It enhanced the salary of three employees, namely, Sri Ajaz Ahmad from Rs. 800 to Rs. 900 per month, Ali Ahmad from Rs. 1,000 to Rs. 1,200 per month and Mohammad Ali from Rs. 500 to Rs. 900 per month in the assessment year 1975 -76.

(3.) THE assessee preferred appeal before the Commissioner of Income -tax (Appeals). The Commissioner of Income -tax (Appeals), however, agreed with the Income -tax Officer on this issue and refused to interfere except for the observation that there appears to be a typographical error in working out these additions.