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TMI Blog1984 (8) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... wing common question of law said to arise out of the consolidated order of the Tribunal in ITA Nos. 912 and 915/Mds/1983 dt. 26th Nov. 1983 to the Madras High Court for the opinion under s. 256(1) of the IT Act, 1961, namely: "Whether on the facts and in the circumstances on the case, the Tribunal is correct in law in holding that remuneration paid by the HUF to its karta for looking after the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm and only normal functions were expected to be rendered by them and nothing special otherwise. 3. On second appeal, the Tribunal found that the Kartas not only looked after the families' own money-lending business but also the partnership business on behalf of their respective families. Quoting the ratio of the Supreme Court in the case of CIT vs. Ramniklal Kothari (1969) 74 ITR 57 (SC), th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to the Madras High Court in the case of CIT vs. S. A. P. Annamalai (1970) 75 ITR 109 (Mad) for the proposition that there was no difference whether there was an agreement in writing or not so long as the salary, as a matter of fact, was actually paid to the Kartas of the family for managing or carrying on its business. In the case of the assessee obviously there was no agreement for payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of commercial expediency having been incurred wholly and exclusively for the purpose of business. 4. Thus, the decision of the Tribunal is based o the authoritative decisions of the Supreme Court and several High Courts. The finding of the Tribunal that the remuneration was paid to the Karthas only for the purpose of rendering services to the HUFs is a finding of fact and the conclusion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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