https://www.taxtmi.com/caselaws?id=276561 Salary paid to a karta for managing a Hindu undivided family business is not deductible as business expenditure unless a valid special arrangement binds all coparceners. A karta is already under a legal duty, by virtue of his status, to manage the family business, so payment for performing that duty is ordinarily an appropriation of profits rather than expenditure laid out wholly and exclusively for business purposes. Here, the alleged agreement bound only two coparceners and not the minor members, and the surrounding circumstances showed the payment was not a genuine business outlay. The amount was therefore not an allowable deduction under the Income-tax Act, 1922. en-us Wed, 28 Mar 1962 00:00:00 +0530 Tue, 13 Nov 2018 18:13:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276561 Salary paid to a karta for managing a Hindu undivided family business is not deductible as business expenditure unless a valid special arrangement binds all coparceners. A karta is already under a legal duty, by virtue of his status, to manage the family business, so payment for performing that duty is ordinarily an appropriation of profits rather than expenditure laid out wholly and exclusively for business purposes. Here, the alleged agreement bound only two coparceners and not the minor members, and the surrounding circumstances showed the payment was not a genuine business outlay. The amount was therefore not an allowable deduction under the Income-tax Act, 1922. Case-Laws Income Tax Wed, 28 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276561