| Case ID |
0378c240-8e9d-4526-a10b-1dfc449a69b0 |
| Body |
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| Case Number |
CIVIL APPEAL No. 10 OF 1965 |
| Decision Date |
Dec 09, 1965 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the Tribunal's decision, confirming that the income received by Mathura Prasad as remuneration from the firm was to be included in the assessment of the Hindu Undivided Family (HUF). The Court found that the funds of the HUF were instrumental in allowing Mathura Prasad to become a partner in the firm, and thus the income earned was directly related to the joint family funds. The appeal was dismissed, with the Court ruling that the question of law raised was already concluded by precedent and did not warrant further elaboration. |
| Summary |
In the case of Mathura Prasad v. Commissioner of Income Tax, the Supreme Court of India addressed the taxation of income received by a member of a Hindu Undivided Family (HUF). The case revolved around whether the remuneration claimed by Mathura Prasad, who managed the HUF and entered into a partnership with other HUFs, should be taxed as personal income or as income of the HUF. The Court ruled that the remuneration was taxable in the hands of the HUF, emphasizing the inseparable link between the family funds and the income earned. This ruling highlights critical aspects of tax law concerning HUFs, partnership agreements, and the conditions under which income is assessed. The decision underscores the importance of family funds in determining tax liability and serves as a significant reference for future tax-related cases involving HUFs. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K. Subba Rao,
J.C. Shah,
S.M. Sikri
|
| Lawyers |
A.N. Kirpal,
B.N. Kirpal,
A.V. Viswanatha Sastri,
Gopal Singh,
R.N. Sachthey
|
| Petitioners |
Mathura Prasad
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1966 SLD 186,
(1966) 60 ITR 428
|
| Other Citations |
CIT v. Kalu Babu Lal Chand [1959] 37 ITR 123,
Piyare Lal Adishwar Lal v. CIT [1960] 40 ITR 17
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4
|