RAJIV SHARMA, VINAY KUMAR MATHUR, JJ. - (1.) HEARD Sri N.K. Seth, Senior Advocate, assisted by Sri Ashish Chaturvedi, learned Counsel for the appellant and Sri D.D. Chopra, learned Counsel for the respondent.
(2.) SINCE in the above captioned income -tax appeals, common question of law and facts, relating to two different Assessees, namely, Sandeep Kohli and Vishal Kohli, who were Directors of M/s Kohli Brothers, Colour Lab Private Ltd., Lucknow, are being involved, as such, all the income tax appeals have been clubbed together and are being disposed of by a common order. Through the above captioned income tax appeals under Section 260 -A of the Income Tax Act, 1961 [hereinafter referred to as the "Act"], the appellant challenges the order dated 29.6.2001 passed by the Income Tax Appellate Tribunal, Lucknow Bench, Lucknow [hereinafter referred to as the "Tribunal"] for the different Assessment Years, whereby the Tribunal dismissed the appeals preferred by the assessees/appellants. The unsuccessful appellant has also assailed the order dated 16.9.1996 passed by the Assessing Officer as also the judgment and order dated 11.4.1997 passed by the Commissioner of the Income Tax.
(3.) IN nutshell, the facts of the case are that assessees/appellants, namely, Sandeep Kohli and Vishal Kohli, were Directors of M/s Kohli Brothers Colour Lab Private Limited [hereinafter referred to as the "Company"], which is incorporated under the provisions of the Companies Act, 1956. Appellants are working for the Company under the supervision and control of the Board of Directors of the Company as stipulated under the Articles of Association of the Company. For rendering services of the Company, appellants received remuneration as per the resolution passed by the Board of Directors of the Company. On perusal of the Assessment orders pertaining to the Assessment Years 1986 -1987 to 1992 -1993, it would be evident that appellants received remuneration at the rate of Rs.2500/ - per month, which has been under the head "Salaries" for the purpose of Income Tax. Subsequently, the Board of Directors, in its meeting dated 15.2.1993, enhanced the remuneration of the appellant to Rs.4000/ - per month and as such, the appellants filed their income tax returns declaring the income accrued on account of remuneration, as chargeable under the head "Salaries" under Section 15 of the Income Tax Act, after claiming standard deductions under Section 16 of the Act.;