RAJ KUMAR SINGH HUKAM CHANDJI vs COMMISSIONER OF INCOME-TAX MADHYA PRADESH

The Supreme Court ruled that the remuneration received by a Managing Director from a company is assessable as individual income under the Indian Income-tax Act, 1922, rather than as income of the Hindu undivided family (HUF). The Court established that the key principle is whether the remuneration is for personal services rendered by the individual or merely a return on family investments. In this case, the Court found that the Managing Director was elected based on personal merit and not merely due to family shareholding, thus affirming the tribunal's decision that the income was individual and not HUF income.