- (1.) This appeal is by special leave. The relevant assessment year is 1954-55 corresponding to the accounting period 1-11-1952 to 31-10-1953. The assessee-respondent who is now dead derived income from securities, dividends, Directors' fee, commission and trading in stock. During the assessment year in question several aspects were disputed but assessability of three sums has survived for examination of this Court, namely :- 1. Rs. 16,000/- said to be salary payable to the assessee for the last two months; 2. Rs. 1,82,141/- said to be dividend income from two companies as would be presently indicated; and 3. Rs. 1,85,070/- representing the value of perquisites enjoyed by the assessee.
(2.) The Income-tax Officer found all the three sums to be assessable in the hands of the assessee and included them for the purpose of his assessment. The Appellate Assistant Commissioner, the Appellate Tribunal as also the High Court found in favour of the assessee and deleted these amounts. That is how the Revenue is in appeal before this Court after obtaining special leave.
(3.) So far as the sum of Rs. 16,000/- is concerned, there has been a positive finding of fact that notwithstanding the fact that the resolution discontinuing payment of salary was passed after the expiry of the relevant period, there has been an oral agreement preceding it to discontinue the payment of salary. On the fact found, even on the basis and the mode of accounting adopted by the assessee the sum would not be addable. On the first score the Revenue must fail.;