Skip to content


Pratapveer Kakkar Vs. Commissioner of Income-tax - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAllahabad High Court
Decided On
Case NumberIncome-tax Reference Nos. 308 and 359 of 1971
Judge
Reported in[1974]96ITR301(All)
ActsIncome Tax Act, 1961 - Sections 256(1)
AppellantPratapveer Kakkar
RespondentCommissioner of Income-tax
Appellant AdvocateAshok Gupta, Adv.
Respondent AdvocateR.R. Misra, Adv.
Excerpt:
- - now a question like this is not a pure question of law but a mixed question of fact and law. 738 of 1969, decided on 29th march, 1973). the tribunal would be well advised to peruse that judgment before drawing up the supplementary statement of the case......case, was right in holding that the salary received by the assessee was the income of the hindu joint family of which the assessee was the kerta, and not his individual income '2. after hearing the learned counsel for the parties we are of the opinion that a supplementary statement of the case should be called for from the tribunal 3. the assessee is a director of a company which took over the business of a joint family of which the assessee was the karta. in the articles of association of the company there is a provision that if any director devotes extra time to the affairs of the company he would be entitled to additional remuneration. under that clause, a sum of rs. 4,500 was paid by the company to the assessee by way of remuneration. the income-tax officer treated this amount as.....
Judgment:

Gulati, J.

1. This is a reference under Section 256(1) of the Income-tax Act, 1961, seeking the opinion of this court on the following question :

' Whether the Tribunal, on the facts and in the circumstances of the case, was right in holding that the salary received by the assessee was the income of the Hindu joint family of which the assessee was the kerta, and not his individual income '

2. After hearing the learned counsel for the parties we are of the opinion that a supplementary statement of the case should be called for from the Tribunal

3. The assessee is a director of a company which took over the business of a joint family of which the assessee was the karta. In the articles of association of the company there is a provision that if any director devotes extra time to the affairs of the company he would be entitled to additional remuneration. Under that clause, a sum of Rs. 4,500 was paid by the company to the assessee by way of remuneration. The Income-tax Officer treated this amount as the income of the joint family and not of the assessee on the ground that the shares which qualified him to become a director were acquired out of the joint family funds. Now a question like this is not a pure question of law but a mixed question of fact and law. The fact that the assessee acquired the shares which qualified him to become a director out of the joint family funds is not decisive nor is the fact decisive that there is a provision in the articles of association authorising such payments. The answer to the question would depend on the nature and extent of services rendered by the assessee to the company, namely, as to whether the services rendered were of such a nature as depended on the personal qualification of the assessee or were of a general nature. We have dealt with a somewhat similar question in the case of Sri Bimal Kumar Jain v. Commissioner of Income-tax, [1974] 93 I.T.R. 225 (All.) (Income-tax Reference No. 738 of 1969, decided on 29th March, 1973). The Tribunal would be well advised to peruse that judgment before drawing up the supplementary statement of the case.

4. We, accordingly, direct the Income-tax Appellate Tribunal, Delhi Bench ' B ', to record a finding on the material already on record as to whether the assessee rendered any service to the company and if so what was the nature and extent of that service. The supplementary statement of the case may be submitted within a period of 3 months. There will be no order as costs.

Income-tax Reference No. 359 of 1971

5. For order, see our order of date in the connected Income-tax Reference No. 308 of 1971.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //