1985 (1) TMI 77

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....on one hand and Motilal on the other. Moti Lal claimed to have had formed an HUF with his wife even after that partial partition. A firm was constituted, Har Narain Motilal by name of which the partners were Motilal (HUF) consisting of himself and his wife and Vinod Kumar. Cl. (6) of the said deed of partnership provided payment of monthly allowance to the partners. It reads as under: "That eac....

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....als preferred by the department against the orders of the AAC is as to whether the allowance of Rs. 6,000 per annum received by Motilal from the partnership firm should be treated as income of Motilal (HUF) or Motilal (individual). 3. We have heard ld. representatives of the parties. There cannot be any quarrel with the proposition that remuneration of a member of an HUF as partner of the firm ....

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....onthly allowance of Rs. 500 was obviously paid to Motilal not only for his personal services but also for goodwill of the business and as such, the contract of partnership was that Motilal would get the same amount of Rs. 500 per month till his death even if he retired form the partnership. In view of these facts the law that remuneration received by a member of HUF from a firm in which the HUF is....