TMI Blog1995 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee from M/s. B. K. M. Ananthapadmanaba Iyer Sons. 2. The assessee has taken several grounds to urge that there was no direct nexus between the salary and the investment of funds by the HUF into the partnership and the payment of salary was not at the detriment of the assets of the HUF but by virtue of their own experience in business. The common prayer is that the orders of the D. C. (Appeals) should be set aside and the deduction for salary paid to Karta should be allowed. 3. These assessees are members of the erstwhile HUF of M/s. B. K. M. Ananthapadmanaba Iyer Sons till 1960. There was a partial partition in that family and a partnership was constituted consisting of four partners who were the erstwhile members of the Big ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ather it was an agreement on the part of the partners of the firm agreeing to pay salary to these two partners for looking after the firm's business as full time servants. As a consequence, the Assessing Officer concluded that the claim was not admissible because the salary paid to the Karta of the respective HUF cannot be allowed as a deduction from the share income of the assessee from the partnership concern. Further, the Assessing Officer also justified the inclusion of salary in the hands of the appellants-HUF by stating that Karta would not have become partner in the partnership but for the family funds. 5. On appeal, the D. C. (Appeals), upheld the order of the Assessing Officer and dismissed the appeal filed by the appellants. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant case, Shri K. A. Rajagopal has put in an experience of 34 years in the trade and he has joined at the age of 18. It is stated that Shri Suresh is a qualified textile engineer and was employed in Madura Coats Ltd., wherein he has worked as Supervisor from 13-12-1972 to 12-9-1976. Copy of the Diploma obtained in Textile Manufacture and the training in the spinning department in the Sree Meenakshi Mills Ltd. during the period 27-9-1970 to 26-9-1971 was also filed. Thus, these appellants are having specialised skill and experience and inasmuch as, Shri B. K. M. Ananthapadmanaba Iyer is aged 85 years and Shri K. A. Mohan, son of Sri B. K. M. Ananthapadmanaba Iyer is an engineer and cannot engage himself in the conduct of business, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Karta partners for and on behalf of respective HUF for which there is no material to support. At best, it is an argument for its own sake so to say. Similarly, there is no merit or warrant for inclusion of remuneration in the hands of the respective HUF simply because it is to be claimed as a deduction only in the hands of the partnership as a legitimate expenditure incurred by the partnership for earning the profits and gains of the business. Thus, there has been mixing up of issues which had led to confusion. Following the ratio of the Madras High Court in the case of Surendra Manilal Mehta, there is no justification at all for inclusion of remuneration in the hands of the respective HUF and accordingly, we set aside the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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