Hidayatullah, J. - (1.) This is an appeal by special leave from a judgment of the High Court of Patna in a reference under section 66(2) of the Income Tax Act. The assessee is the appellant. Messrs. Jitmal Bhuramal (assessee) is a Hindu undivided family consisting of the four sons and grandsons of Bhuramal. We are concerned with the four brothers, whose names are Hiralal, Gulzarilal, Kunjlal and Madanlal, and one Gobhardanlal, son of Gulzarilal. The family does business in grains, kirana etc. at Madhupur, under two names, Jitmal Bhuramal and Bhuramal Hiralal. The family through its karta was also a partner in another firm called Hiralal Gulzarilal, in which the karta had a 12 annas share, and one Rameshwar Lal, a stranger to the family, had the remaining 4 annas share.
(2.) We are concerned with the assessment year, 1953-54. Hiralal, the karta, entered into two agreements with the other members of the family, by which the junior members agreed to serve the Hindu undivided family on monthly payments of Rs. 200 to Gulzarilal, Rs. 150 each to Kunjlal and Madanlal, and Rs. 100 to Gobhardanlal. By the first agreement, Gulzarilal and Madanlal were to look after the interests of the Hindu undivided family in the partnership, and the two others were to look after the business of the Hindu undivided family.
(3.) In the year of account relative to the assessment year, 1953-54, Rs. 6,600 were paid as remuneration to the four junior members. Rs. 3,850 were paid to Gulzarilal and Madanlal for their services to the partnership and Rs. 2,750 to Kunjlal and Gobhardanlal for their services to the Hindu undivided family. The Income-tax Officer, Santhal Parganas, by his assessment order dated December 31, 1953, only allowed as expenses a payment of Rs. 50 per month to Gobhardanlal. The rest of the claim made under section 10(2)(xv) of the Income Tax Act amounting to Rs. 6,000 was disallowed. The order of the Income-tax Officer was confirmed by the Appellate Assistant Commissioner; but the Income-tax Appellate Tribunal on appeal allowed the deduction of the full remuneration paid to Gobhardanlal and Kunjlal. The Tribunal, however, did not allow the deduction of the amounts paid to Gulzarilal and Madanlal, which, as already stated, totalled Rs. 3,850. The assessee made an application under section 66(1) of the Income Tax Act; "Whether in the facts and circumstances of the case, the assessee, namely, the Hindu undivided family, who is a partner in the partnership business of Hiralal Gulzarilal, is entitled to a deduction of Rs. 3,850 from the assessment of income-tax for the relevant year under section 10(2)(xv) of the Income Tax Act - ;