HARI KRISHNA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a Hindu undivided family of which Hari Krishna is the karta. For the assessment year 1964-65, Had Krishna received Rs. 6,000 as managing director's remuneration from M/s. Beharilal Mannilal Investors and Financiers Private Ltd. THE claim of Hari Krishna that this was his individual income was rejected by the Income-tax Officer on the ground that the family funds were Invested in the purchase of the shares of the company of which the assessee became the director.

(2.) ON appeal the finding was affirmed and it was held that the managing director's remuneration was the income of the Hindu undivided family. The assessee carried the dispute to the Tribunal but failed.

(3.) HARI Krishna's Hindu undivided family consisted of himself, his wife and four sons. In 1953, there was a partial partition under which out of 200 shares held by this Hindu undivided family in the company, 50 were allotted to HARI Krishna and the remaining were given to the sons. The sons separated from the family. Thereafter, the family consisted of HARI Krishna and his wife only. Since the partition and till the assessment year 1963-64, the managing director's remuneration received by HARI Krishna was assessed in the status of an individual.