K.S. SUBBIAH P-ILLAI vs THE COMMISSIONER OF INCOME TAX

The Supreme Court held that the remuneration and commission received by the Karta of a Hindu Undivided Family (HUF) were not assessable as income of the HUF, as they were earned due to personal qualifications and exertions rather than the investment of family funds. The Court emphasized the distinction between income derived from family investments and income earned through individual efforts. Consequently, the appeals were allowed, the prior judgment was set aside, and the question was answered in favor of the assessee.