Karta salary enhancement retained HUF character and was assessable in the hands of the Hindu undivided family.

Salary received by a karta, including the enhanced portion of his remuneration, was held to be assessable in the hands of the Hindu undivided family rather than in the individual hands of the karta. The analysis treated the salary increase as having arisen while the brothers were representing their respective HUFs, so the enhanced amount retained the same tax character for assessment purposes. The individual receipt did not sever the connection with the family source, and the income was therefore taxed as HUF income.

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Issues: Whether salary received by a karta, to the extent enhanced from earlier remuneration, was assessable in the hands of the Hindu undivided family or in the individual hands of the karta.

Analysis: The reference was on the same legal point earlier decided in a connected matter involving the karta's brother. The salary increase occurred while the brothers were being treated as representing their respective Hindu undivided families, and the question was whether the enhanced portion retained the same character for tax purposes or became the individual's separate income.

Conclusion: The salary was assessable in the hands of the Hindu undivided family and not in the individual hands of the karta.

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