https://www.taxtmi.com/caselaws?id=7604 A Hindu undivided family's remuneration to its karta was held deductible as business expenditure where it was paid for services actually rendered in the family business. The Madras HC applied the commercial expediency test under the Income-tax Act, 1922, and treated the payment as real expenditure incurred for the business. The absence of a formal agreement did not defeat the deduction because the karta had in fact performed services as editor of the magazine. The remuneration was therefore allowable, and the issue was answered in favour of the assessee and against the Revenue. en-us Wed, 26 Feb 1969 00:00:00 +0530 Thu, 05 Mar 2009 13:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7604 A Hindu undivided family's remuneration to its karta was held deductible as business expenditure where it was paid for services actually rendered in the family business. The Madras HC applied the commercial expediency test under the Income-tax Act, 1922, and treated the payment as real expenditure incurred for the business. The absence of a formal agreement did not defeat the deduction because the karta had in fact performed services as editor of the magazine. The remuneration was therefore allowable, and the issue was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Wed, 26 Feb 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7604