https://www.taxtmi.com/caselaws?id=192916 Remuneration paid to members of a Hindu undivided family for services actually rendered in the family business is deductible where the payment is bona fide, reasonable, and not a device to divert profits or evade tax. If the amount is excessive, disproportionate, or not genuinely linked to services, it may be treated as a distribution of profits instead of an allowable business expense. The disallowance rule applicable to payments by a firm to its partners does not apply in the same way to Hindu undivided family trading concerns. On the facts considered, the payment was allowed as a deduction. en-us Wed, 15 Aug 1945 00:00:00 +0630 Mon, 03 Jul 2017 17:17:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=192916 Remuneration paid to members of a Hindu undivided family for services actually rendered in the family business is deductible where the payment is bona fide, reasonable, and not a device to divert profits or evade tax. If the amount is excessive, disproportionate, or not genuinely linked to services, it may be treated as a distribution of profits instead of an allowable business expense. The disallowance rule applicable to payments by a firm to its partners does not apply in the same way to Hindu undivided family trading concerns. On the facts considered, the payment was allowed as a deduction. Case-Laws Income Tax Wed, 15 Aug 1945 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=192916