Deduction for karta remuneration upheld where payment was genuine, reasonable, and no legal bar was shown.

Remuneration paid to a karta of a Hindu undivided family for managing the business was treated as an allowable deduction where the payment was genuine and not unreasonable. The absence of specific evidence that the family income, apart from share income from the firm, required commensurate services did not by itself justify disallowance. The governing principle applied was that, once no legal bar exists and the compensation is bona fide, the claim cannot be rejected merely because additional income or special necessity for the services is not specifically proved. The allowance of Rs. 9,000 was upheld.

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Issues: Whether remuneration paid to the karta of a Hindu undivided family for managing the business could be allowed as a deduction in the absence of specific evidence that the family income, apart from share income from the firm, required commensurate services.

Analysis: The payment of salary to the karta was not disputed, and no legal bar was shown against such remuneration. Where members of the Hindu undivided family choose to compensate the karta for managing the business, and the payment is found to be genuine and not unreasonable, the claim cannot be rejected merely because additional income or special necessity for such services is not specifically proved.

Conclusion: The allowance of remuneration of Rs. 9,000 to the karta was upheld and the question was answered in the affirmative, in favour of the assessees.

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