1981 (3) TMI 41 - HC - Income Tax

Summary

The High Court of Delhi ruled that bonus and rights shares received by the karta of an HUF, who is also a director of a company, should not be considered as a perquisite for the HUF. Such shares are treated as income for the individual, not the HUF. The court referred to previous Supreme Court decisions to support this interpretation. The court answered the question in the negative and each party was to bear their own costs.