K.S. SUBBIAH PILLAI v. THE COMMISSIONER OF INCOME TAX

The question that we are required to consider reads thus: "Whether, on the facts and in the circumstances of the case, the remuneration and commission received by Sri K.S.Subbiah Pillai was assessable in the hands of the assessee Hindu Undivided Family? It may be mentioned at the outset that the same assessee was assessed in Andhra Pradesh for the Assessment Years 1966-67 to 1968-69. The same question arose in regard to those assessments. The question was answered on reference by the High Court of Andhra Pradesh in favour of the assessee and the Revenue did not carry the matter further. The judgment, of the Andhra Pradesh High Court afore-mentioned was cited before the High Court at Madras "in the reference proceedings out of which these appeals arise but the Madras High Court dissented therefrom. It dilated at length on Hindu Law but, with great respect, missed the point that the Income Tax Appellate Tribunal is the final H \. A fact-finding authority and, as it has itself noticed in the judgment under challenge, the Tribunal had held that the remuneration and commission received by the Karta of the HUF were earned by him on account of his personal qualifications and exertions and not on account of the investment of the family funds in the company and, therefore, could not be treated as the income of the HUF. B The High Court, having analysed the law, rightly concluded that the broad principle that emerged was whether the remuneration received by the coparcener was in substance one of the modes of return made to the family because of the investment of the family funds in the business or C whether it was compensation made for services rendered by the individual coparcener.