9911796707
TMI Blog1983 (11) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... he I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred for the opinion of this court the question of law as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the disallowance of the remuneration paid to Shri Nandkishore, being the karta of the family, for render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AAC. On further appeal, the Tribunal following the earlier orders dated July 22, 1976, passed in ITA No. 401/Ind/74-75, relating to the assessment year 1971-72, and the order dated September 27, 1978, passed in ITA No. 354/Ind/77-78 maintained the disallowance of the salary paid to Shri Nandkishore, karta of the assessee-family. The reasoning of the Tribunal in the earlier two appeals referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ships of the Supreme Court have observed that the test that should always be applied is whether the agreement has been made by or on behalf of all the members of the HUF and whether it was in the interest of the business of the family so that it could be justified on the ground of commercial expediency. Almost a similar view was expressed by their Lordships of the Supreme Court in Jitmal Bhuramal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as karta. The Department also never disputed that Shri Nandkishore was the karta of the assessee-family or that his salary was not paid to him or the payment of the salary to him was not in the interest of the family or it was not genuine or was excessive, etc. On the contrary, the Department had admitted the said position. The karta, Shri Nandkishore, is an experienced person in the business ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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