Judgment

BHARGAVA, J. : These appeals by special leave are directed against the judgment of the Allahabad High Court returning an answer to the following question referred to it by the Income-tax Appellate Tribunal:

"Whether on the facts and circumstances of the case the salary paid or credited to a Karta of the family for looking after the family s business was a permissible deduction under S. 10 (2) (xv) in computing the income of the family business.

2. The assessee was a Hindu undivided family carrying on a joint family business of commission agency in cloth under the name of Jugal Kishore Baldeo Sahai and was, in addition, deriving income from some property and from some partnership business in which the karta Babu Ram was a partner representing the interest of the Hindu undivided family. The family consisted of Babu Ram, his brother Gobardhandas and their sons. In June, 1946, the karta Babu Ram wrote a letter to his brother Gobardhandas, who was the only other adult member of the family, stating that, since he was managing all the business, he ought to get a salary of Rs. 1,000/- per month. Gobardhandas promptly agreed to this proposal and consequently in the account books of