https://www.taxtmi.com/caselaws?id=39898 Remuneration paid to a karta for managing a Hindu undivided family business may be deductible as business expenditure if it is supported by a valid agreement made by or on behalf of competent family members, is bona fide, and is justified by commercial expediency. The karta's status alone does not bar deduction. Where the payment is genuine, not excessive, and is made for services rendered to the family business, it is treated as expenditure laid out wholly and exclusively for that business. On the facts stated, the agreement was accepted as valid and in the family's interest, and the services were connected to the family business; the remuneration was therefore deductible. en-us Tue, 20 Sep 1966 00:00:00 +0530 Wed, 03 Aug 2016 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39898 Remuneration paid to a karta for managing a Hindu undivided family business may be deductible as business expenditure if it is supported by a valid agreement made by or on behalf of competent family members, is bona fide, and is justified by commercial expediency. The karta's status alone does not bar deduction. Where the payment is genuine, not excessive, and is made for services rendered to the family business, it is treated as expenditure laid out wholly and exclusively for that business. On the facts stated, the agreement was accepted as valid and in the family's interest, and the services were connected to the family business; the remuneration was therefore deductible. Case-Laws Income Tax Tue, 20 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39898