1952 (4) TMI 43

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....total income of the assessee family is lawful". The assessee is a Hindu undivided family. The only question that arises for consideration in this reference is, whether the income derived by Hanumanthappa and his son under the managing agency agreement with the Davangere Cotton Mills Company, entered into on 15th March, 1937, should be included in the total income of the assessee under Section 16 of the Act. Being an income which accrued in the Native State, it is exempt under Section 14 of the Act from tax, but it could be taken into consideration under Section 16 of the Act in computing the total income of the assessee for the purpose of determining the rate. It is from that point of view that the question becomes releyant. The join....

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.... interest in the commission earned by the individuals, because they were not purporting to act on behalf of and for the benefit of the joint family. The fact therefore that the disability which, under the law as it now exists, viz., that a joint family as such could not enter in up a managing agency agreement, did not exist when this agreement was entered into in Mysore State would not help the revenue authorities to enable them to include this income in the total income of the assessee. On 20th March, 1940, the deed of partnership was executed between the two, Hanumanthappa and Rama Setty, whereunder it was stated that even on 15th March, 1937, when the managing agency agreement was entered into with the company, it was decided that the tw....