What is the proper head of income for emoluments received by the Treasurer of a bank: salary under S. 7 or profits and gains of business under S. 10? What are the rights and status of Sheel Chandra's emoluments: do they form part of the Hindu undivided family income or are they his separate income? What test or criteria should determine whether a banker’s Treasurer acts as a servant (master–servant) or an independent contractor/agency for tax purposes?

Key Points: - The emoluments of the Treasurer are assessed as salary under S.7, not as profits and gains of business under S.10. (!) (!) - The Treasurer’s emoluments are personal income of Sheel Chandra, not of the Hindu undivided family (Karta). (!) (!) - The agreement and conduct show the Treasurer was in a servant-employer relationship with the Bank, not an independent contractor/agency. (!) (!) - The High Court erred in treating the relationship as master–servant; the Court concluded the Treasurer is a servant of the Bank. (!) - The decision discusses tests for distinguishing master–servant vs. independent contractor, including control, duties, and system of supervision. (!) (!)

What is the proper head of income for emoluments received by the Treasurer of a bank: salary under S. 7 or profits and gains of business under S. 10?

What are the rights and status of Sheel Chandra's emoluments: do they form part of the Hindu undivided family income or are they his separate income?

What test or criteria should determine whether a banker’s Treasurer acts as a servant (master–servant) or an independent contractor/agency for tax purposes?