1984 (3) TMI 9

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....disposal of Tax Case No. 3 of 1975 (CIT v. Atma Ram Budhia [1984] 146 ITR 240) which was referred to a Full Bench, because the question referred in these cases and in the earlier case are almost similar, namely, as to whether, on the facts and in the circumstances of the case, the salary received by a member of a Hindu undivided family from a firm in which he was working as a partner, could be ass....

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....ly business up to the assessment year 1960-61. On April 8 ) 1959, there was a partial partition when the capital invested in the said business was partitioned amongst the various members and the business was thereafter carried in partnership under an instrument of partnership dated July 4, 1959, by the assessees and the widow of Raghunandan Prasad, namely, Smt. Shyam Pyari Devi. Subsequently, on N....

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....tant Commissioner allowed the assessees' claim. The departmental appeal before the Tribunal also failed. The Tribunal by consolidated order disposed of all the eight appeals on a finding that " the salaries have been paid under an agreement which is not questioned by the assessees or by the other partners of the firm and the interests of the Hindu undivided families remained intact and are not adv....

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....hat where there was no real and sufficient connection between the investment of the joint family funds in acquiring the shares and the payment of the remuneration to the karta, the remuneration paid to him was not earned by any detriment to the joint family assets and the amounts received by him were not assessable as the income of the Hindu undivided family. The Tribunal has also referred to s....