1969 (2) TMI 43 - HC - Income Tax

Whether remuneration paid by a Hindu undivided family to the karta for services rendered could be a deduction in the computation of the income of the Hindu undivided family - Held, yes

Summary

The judgment relates to assessment years 1959-60 to 1961-62 regarding deduction of remuneration paid to the karta of a Hindu undivided family for managing the family business. The High Court allowed the deduction, citing precedent that such payments can be deducted as a matter of commercial or business expediency. The claim was upheld, rejecting the revenue's argument against the deduction. The court ruled in favor of the assessee with costs.