COMMISSIONER OF INCOME TAX Vs. GULSHAN ELECTRIC STORE

JUDGEMENT

(1.) These two appeals are being disposed of by this common judgment since the substantial questions of law involved in both the appeals are very similar. The questions formulated in ITA No.74 of 2006 are as under:-

(2.) The facts of ITA No.74 of 2006 are being given in this appeal because we find that in ITA No.63 of 2006, the tax effect is less than Rs.2 lac and, therefore, the appeal would not be maintainable.

(3.) Thereafter, when the assessee filed its return, it showed the surrendered amount of Rs.15,20,000/- in its book profit and salary of the partners was claimed by it by adding this amount of Rs.15,20,000/- to the other book profits by invoking Section 40(b)(v) of the Income Tax Act, 1961 which reads as follows:-