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TMI Blog2007 (4) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ether on the facts and in the circumstances of the case, the salary of Rs.4,800/- and commission of Rs.3,737/- received by Shri Lachhman Dasss Bhatia from the firm M/s Chetan Dass Lachhman Dasss in which he was a partner as Karta of his HUF, is includible in the total income of the Assessee HUF? 2. Whether, on the facts and in the circumstances of the case, the HUF was barred by Section 247 of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rship dated 23rd April, 1977. There are two partners in the firm, that is, Lachhman Dass Bhatia as a representative and Karta of M/s Lachhman Dass Bhatia and Sons Hindu Undivided Family (the Assessee) with 50% share in the profit and loss of the firm and Sh.Anil Kumar Bhatia who happens to be the son of Lachhman Dass Bhatia having the balance 50% share. 4. It is the case of the Assessee that Lach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtner, and the remuneration paid, then the remuneration is taxable as the income of the HUF. On the facts of that case, it was held that since Prem Nath was a working partner and there was no evidence on record to suggest that the remuneration agreed to be paid was not for services rendered to the partnership, it was held that the income received by Prem Nath was remuneration for services rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Quite apart from this, we find that the firm had filed an appeal before the Commissioner of Income Tax(Appeals) in respect of assessment year 1978-79 and in the order passed by the Commissioner on 4th March, 1982, it was noted that the firm was required to lead evidence for the extra services rendered by ,Lachhman Dass Bhatia in his individual capacity other than as Karta of the HUF being a part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices which could dispel this view or to show that there was no "real or sufficient" Connection between the management of the firm and the salary or commission paid to Lachhman Dass Bhatia for any services said to be rendered by him. 9. This being the position, we answer the questions referred to us by concluding that the salary and commission received by Lachhman Dass Bhatia is includible in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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