COMMISSIONER OF INCOME-TAX, WEST BENGAL-III vs KALLU BABU LALCHAND — 1971 PTD 935

Citation: 1971 PTD 935

Court: Calcutta High Court

Year: 1969

Decision Date: 1969-02-12

Parties: COMMISSIONER OF INCOME-TAX, WEST BENGAL-III vs KALLU BABU LALCHAND

Headnotes

Case cited as 1971 PTD 935

Judgment Text

Court Name: Calcutta High Court Judge(s): Sabyasachi Mukharji, S. C. Jeb Title: COMMISSIONER OF INCOME-TAX, WEST BENGAL-III vs KALLU BABU LALCHAND Case No.: Income-tax Reference No. 44 of 1965 Date of Judgment:1969-02-12 Reported As: 1971 PTD 935 Result: order made JUDGMENT JUDGMENT SABYASACHI MUKHARJI, J.---The relevant corresponding previous year for assessment years 1951-52, 1952-53 and 1953-54 are Dewali years 2007, 2008 and 2009 respectively. The assessee is a Hindu undivided family consisting of two brothers, Sri B. K. Rohatgi and Sri R. K. Rohatgi, and their families. A limited company called the India Electric Works Ltd. Was incorporated some time in 1930. Under article 132 of the articles of association of the aforesaid company, Sri R. K: Rohatgi was appointed the first Managing Director of the company and in accordance with the aforesaid article an agreement was entered into between the company and Mr. Rohatgi on the 31st January 1934, under which Mr. Rohatgi was appointed the Managing Director, at an annual remuneration or a commission whichever might be higher. Until the assessment year 1943-44 the assessee-Hindu undivided family included the remuneration of Sri Rohatgi as Managing Director in its total income and was assessed accordingly. For the assessment year 1943-44 it was contended by the assessee that the remuneration earned by Mr. Rohatgi was his personal income and was not liable to be included in the assessable income of the family. This contention…

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