Judgment

RAMASWAMI, J.- The respondent is a Hindu Undivided Family (hereinafter called the assessee) of which Shri D. C. Shah is the Karta. The assessment years are 1959-60 and 1960-61 and the relevant accounting periods are Samvat years 2014 and 2015. The assessee through its karta Shri D. C. Shah was a partner in the firms of (1) M/s. C. U. Shah 1and Co. and (2) M/s. Oriental Can Manufacturing Co. as per terms and conditions set out in the Instruments of Partnership dated 5th June, 1961 and 11th September, 1957. Shri D. C. Shah was paid a remuneration of Rs. 12000/- per year for both the assessment years by M/s. C. U. Shah and Company. He was paid Rs. 10000/- for the assessment year 1959 -60 by the Oriental Can Manufacturing Company. The amounts received by Shri D. C. Shah were shown by the assessee in its returns of income along with balance of the share income from the aforesaid firms. The Income Tax Officer in assessing the Hindu Undivided family included the remuneration received by Shri D. C. Shah as a part of the share income from, the respective firms. Before the Appellate Assistant Commissioner the assessee contended that the remuneration received by Shri D. C. Shah was h