1984 (2) TMI 72

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....hereinafter called the " Act "), this court directed the Tribunal to state a case and refer the question of law arising out of its order for the opinion of this court and the Tribunal has referred the following question for opinion of this court: " Keeping in view the terms of the agreement relied upon for authorising payment to the karta, whether the payment is admissible under s. 37 of the In....

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....disallowed by the ITO. In appeal before the AAC, the order of the ITO was confirmed. Second appeal was carried to the Tribunal and the Tribunal also dismissed the same. Thereafter an application under s. 256(1) of the Act having been dismissed, this application under s. 256(2) of the Act was filed before this court to state a case and refer the question of law arising in this case for the opinion ....

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....or, the business of the family and the payment is genuine and not excessive, such remuneration must be held to be an expenditure laid out wholly and exclusively for the purpose of the business of the family and must be allowed as an expenditure under section 10(2)(xv) of the Act (1922 Act). " In the present case, there is nothing before us to come to a finding that the agreement is invalid. ....

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....person need not carry on business himself personally, but he can carry on business through agents and managers or representatives, it could never be urged that the HUF carrying on business in representative capacity forming such partnership was not carrying on business activity. That is why, their Lordships never went into this question and sub silentio the decision in Jugal Kishore's case (1967] ....