MURARI LAL KHANDELWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application filed under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for our opinion :

(2.) THE assessee is an individual deriving income from house property, investments, interest, dividend and from two proprietary concerns of M/s Khandelwal Investment Consultants, Ajmer, and M/s M.L. Khandelwal & Co., Jaipur, both carrying on the business of buying and selling of share scripts for their investor clients and also acting as brokers for public issue and earning commission and brokerage from this activity. The entire activities carried on at Jaipur by his three employees, two of them happen to be his sons Shri Anoop and Shri Alok.

(3.) LEARNED counsel for the assessee Mr. Jhanwar submits that the amount of salary claimed on account of payment to the sons i.e., Anoop and Alock was reasonable, as both are looking after the business and assessee has got paralytic attack in the year 1983, therefore, the payment of salary to these persons at the rate of Rs. 6,000 and Rs. 5,000 per month, respectively, was justified.