THE COMMISSIONER OF INCOME-TAX, WEST BENGAL vs KALU BABU LAL CHAND

The Supreme Court held that the remuneration received by R, the karta of a Hindu undivided family, as managing director of a company was to be treated as income of the Hindu undivided family under the Income-tax Act. The Court clarified that although the managing director is an individual appointed for personal skills, the income derived from the position must be assessed based on whether it was earned using joint family assets. Since R utilized family funds for the business, the remuneration was deemed the income of the Hindu undivided family and should be taxed accordingly.