1994 (8) TMI 4

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....erence under section 256(1) of the Income-tax Act, 1961, in respect of the assessment year 1972-73, at the instance of the assessee. The question referred reads as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the remuneration received by Shri Balak Ram, karta of the assessee-Hindu undivided family was assessable in the assessee's....

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....divided family formed the partnership and subsequently converted themselves into a limited company. Thus the respective shares of all concerned persons certainly belonged to the erstwhile larger Hindu undivided family. It is in these circumstances and having regard to the fact that the articles of association of the company specifically provided for Balak Ram to be appointed as a director for life....

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....held by his family and not on account of any personal qualification and that the remunerations paid to him were the income of the assessee-Hindu undivided family. Even if there was some element of personal service that would not change the character of the income." We do not find any error in the approach of the Appellate Tribunal. The finding is fully justified in view of the decision of the S....