1968 (7) TMI 46

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....ns agreed to carry on business in partnership in cardamoms, betel nuts, pepper and other condiments. G.V. Dhakappa, one of the partners, was appointed manager of the partnership on a remuneration of Rs. 500 per mensem. The firm was registered and the total share of profits allocated to G. V. Dhakappa in the assessment for the assessment year 1960-61 was Rs. 14,734 which included the amount of Rs. ....

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.... question was referred by the Tribunal to the High Court of Mysore : " Whether, on the facts of this case, and having regard to section 10(4)(b) and section 16(1)(b) of the Income-tax Act, 1922, the salary paid as per clause 7 of annexure A is liable to be excluded from the assessment of the assessee Hindu undivided family and assessed in the hands of the individual, Shri G. V. Dhakappa ? " ....

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....ufficient connection between the joint family funds and the remuneration paid by the partnership to the manager of the joint Hindu undivided family, who was a partner, the remuneration was taxable as the income of the Hindu undivided family. In the present case there is no such finding recorded by the Tribunal. As we have already observed, the departmental authorities merely proceeded on the footi....