1968 (7) TMI 46 - SC - Income Tax

Karta of HUF was partner in a firm representing his family, was appointed manager of firm - salary paid to Karta could not be treated as income of HUF - Revenue s appeal dismissed

Summary

Partnership business in cardamoms, betel nuts, and pepper. Dispute over salary allocation to partner representing Hindu undivided family. High Court ruled salary to be excluded from family income. Supreme Court dismissed appeal, citing lack of connection between salary and family assets. Judgment based on V. D. Dhanwatey's case. No costs awarded.