TMI Blog1997 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The following question of law arising out of the order of the Tribunal was sought to be raised by the Department : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the salary could not be assessed in the hands of the Hindu undivided family ?" The Tribunal rejected the application under section 256(1). The Revenue made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nath v. CIT [1970] 78 ITR 319, where this proposition of law was reiterated. As against this, reference was made in the High Court to the case of CIT v. R. M. Chidambaram Pillai [1977] 106 ITR 293 (SC). The High Court was of the view that this judgment is in conflict with the other judgments of this court and on that basis a certificate of fitness to appeal under section 261 was granted. We do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be treated as agricultural income. The firm was engaged in agricultural activities. Its income had been assessed as partly agricultural and partly non-agricultural. This court took the view that a partnership firm is a compendious way of describing the partners. So if a portion of the income of a partnership is given to the managing partner or a partner for rendering services then the income wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as separately given to the managing partners individually for their services. This finding was on the basis that the salary was found to have been paid for services rendered by the partners to the firm. On further appeal, the Tribunal sustained the finding of the Appellate Assistant Commissioner. Therefore, on the basis of the finding of fact, it must be held that the Tribunal had come to a right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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