1999 (3) TMI 5 - SC - Income Tax

Whether the remuneration and commission received by Sri K. S. Subbiah Pillai was assessable in the hands of the assessee-Hindu undivided family - remuneration and commission that were earned by the karta were earned by him on account of his personal qualifications and exertions and not on account of the investment of the family funds and therefore should have held that the income could not be treated as the income of the Hindu undivided family.

Summary

The Supreme Court judgment concerned the assessment of remuneration and commission received by a Hindu undivided family. The High Court held that if the income was compensation for services rendered by an individual coparcener, it belonged to the coparcener, not the family. The Supreme Court disagreed, stating that the income was earned due to personal qualifications and exertions, not family funds. The appeals were allowed, setting aside the previous judgment and answering the question in favor of the assessee.