1984 (3) TMI 59

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....o the family ? " In both the cases, the assessee is a Hindu undivided family (" HUF consisting of the karta, his wife and minor children. The HUF is a partner through the karta in certain firms. In the assessment proceedings for the year 1975-76, it has claimed deduction of a sum paid to the karta as remuneration for services rendered. In I.T.R.C. No. 127/80, the deduction claimed was Rs. 12,000 and in I.T.R.C. No. 128180, a sum of Rs. 6,000 was claimed. In the previous assessment years such deductions were claimed to the extent of Rs, 4,800 and also allowed by the assessing officer. But, for the assessment year 1975-76, the ITO disallowed the claim on the ground that there was no agreement between the HUF and the karta for payment of remu....

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....neration paid to the karta for services rendered, there shall be an agreement between the parties for payment of such remuneration. But such an agreement need not be in writing. It may be inferred from the course of conduct of the parties. Mr. Raghavendra Rao for the Revenue urged that the Tribunal has recorded a finding that there was no proof of any consultation between the husband and the wife in regard to payment of remuneration for services rendered by the former and, therefore, we cannot infer anything to the contrary in this advisory jurisdiction. It is true that there is no evidence of consultation between the husband and the wife as to the payment of remuneration for services rendered. But that is not the only thing which is need....