HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Commissioner of Income-tax, West Bengal v. Kalu Babu Lal Chand
Civil Appeal No. 431 of 1957
[1960] 1 SCR 320 ·
Indian Income-tax Act, 1922, section 66(1)
Sources & disclosures includedDownload original judgment / order
3-judge bench · S. R. Das · N. H. Bhagwati · M. Hidayatullah
Assessment years: 1943–44
01 · Facts of the case
Family karta promoted and financed India Electric Works with joint-family funds and became managing director under the company articles. Rs 61,282 remuneration, previously credited to family, was claimed as personal income. Tribunal apportioned it; High Court held all personal.
Source: Primary report: SCR 322–327
02 · Discussion by the Hon’ble Court
Company’s appointment of an individual did not resolve beneficial ownership between karta and family. Acquisition, promotion, finance and managing directorship formed an inseparably linked scheme funded entirely by family assets. Prior accounting treatment was relevant though not res judicata.
Source: Primary report: SCR 327–332
03 · Judicial decision
Whole managing-director remuneration was family income on the established facts; no apportionment challenge remained before Supreme Court.
Source: Primary report: SCR 327, 331–332
04 · Outcome / in whose favour
Revenue appeal allowed with costs in both courts; second reference answered that all Rs 61,282 was assessable on HUF.
Source: Primary report: SCR 332
05 · AKHB REVIEW POINT
Historical attribution is fact-dependent: link between family funds and appointment mattered. Do not infer that every karta’s remuneration is HUF income or claim current-law clearance.
Source: Primary report: SCR 328–332
Source & verification
Download original judgment / order · Open cited source rendition
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Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
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General legal and tax research only; not legal or tax advice. Verify the complete judgment, applicable statutory version and subsequent treatment before reliance. AKHB REVIEW POINT is editorial analysis, not the Court’s holding.