9911796707
TMI Blog1962 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... service to the Hindu undivided family, sufficient to attract the application of section 10(2)(xv) of the Income-tax Act, because it cannot be said to be wholly and exclusively for the Hindu undivided family. The answer to the question was rightly stated by the High Court in the negative. Appeal dismissed. - - - - - Dated:- 2-2-1962 - Judge(s) : S. K. DAS., M. HIDAYATULLAH., J. C. SHAH JUDGMENT The judgment of the court was delivered by HIDAYATULLAH J.----This is an appeal by special leave from a judgment of the High Court of Patna in a reference under section 66(2) of the Income-tax Act. The assessee is the appellant. Messrs. Jitmal Bhuramal (assessee) is a Hindu undivided family consisting of the four sons and grandsons o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the claim made under section 10(2)(xv) of the Income-tax Act amounting to Rs. 6,000 was disallowed. The order of the Income-tax Officer was confirmed by the Appellate Assistant Commissioner ; but the Income-tax Appellate Tribunal on appeal allowed the deduction of the full remuneration paid to Gobhardanlal and Kunjlal. The Tribunal, however, did not allow the deduction of the amounts paid to Gulzarilal 'A' and Madanlal, which, as already stated, totalled Rs. 3,850. The assessee maae an application under section 66(1) of the Income-tax Act ; but the Tribunal rejected it. The assessee then applied to the High Court under section 66(2), and obtained a reference on the following question : " Whether in the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribanal, which has been relied upon by the assessee, makes its case even more difficult. A Hindu undivided family is allowed to deduct salaries paid to members of the family, if the payment is made as a matter of commercial or business expediency ; but the service must be to the family. It was held by this court in Dulichand Laxminarayan v. Commissioner of Income-tax, that " partnership " being the relation between persons, who have agreed to share the profits of a business carried on by all or any of them acting for all, and " persons " who enter into the partnership being called individually " partners " or collectively " a firm " the word " person " contemplates only natural or artificial, i.e., legal persons, and neither a firm ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
