9911796707
TMI Blog1984 (11) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... Salary received Salary received No. in assessment in assessment year 1979-80 year 1980-81 Rs. Rs. 1. EASSN Somasundaram Chettiar Co. 3,000 3,000 2. Madura Mercantile Mart 910 770 -------- ------- Total 3,910 3,770 -------- ------- 3. The ITO was of the view that a firm has no separate legal entity from its partners and that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e test is whether the remuneration received by the coparcener in substance though not in form was but one of the modes of return made to the family because of the investment of the family funds in the business or whether it was a compensation made for the services rendered by the individual coparcener. If it is the former, it is an income of the Hindu undivided family but if it is the latter then it is the income of the individual coparcener. If the income was essentially earned as a result of the funds invested the fact that a coparcener has rendered some service would not change the character of the receipt. But if on the other hand it is essentially a remuneration for the services rendered by a coparcener, the circumstance that his servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient connection between the investment of the joint family funds in the firm and the remuneration paid to him, the remuneration received by the karta could not be treated as income of the family. 9. Now, in the present case, it is not disputed that Shri N.R. Gopalakrishnan was an experienced jeweller and he contributed his personal skill to the promotion of the businesses of the firms in which he was a partner. Obviously, therefore, he received the salaries in question from the firms for the services rendered by him. There is no material on record to establish a direct nexus between the salary received by Shri N.R. Gopalakrishanan and the investment of the funds of his HUF or to show that the payment of salary was to the detriment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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