1969 (2) TMI 43

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.... years 1959-60 to 1961-62. The assessment was in the status of a Hindu undivided family which consisted of Annamalai, the karta, and his minor son. Annamalai is a Master of Arts and a Law Graduate. He was engaged as an editor of a Tamil magazine by name Kumudam. The assessee claimed deduction of a certain sum for each of the years as a deduction in the computation of the income from the magazine. ....

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....re, the remuneration claimed by Annamalai and paid by the Hindu undivided family should be disallowed as a deduction. It seems to us that the point is really covered by Jugal Kishore Baldeo Sahai v. Commissioner of Income-tax. Following an earlier decision in Jitmal Bhuramal v. Commissioner of Income-tax, the Supreme Court held that the remuneration paid by the Hindu undivided family to the karta ....

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....r of fact, salary has been paid to the karta of the family for managing or carrying on its business. In this case the other member of the family being a minor, one cannot visualise an agreement. But that does not mean that the karta who was carrying on the joint family business, and particularly the magazine, had no power, acting for the joint family, to allow salary for his services from the fund....