The assessee firm paid commission to various persons and entities including Rs. 3 lakhs each to Hindu undivided families. The  AO. while finalizing the assessment disallowed the commission paid to the HUF by observing that the same person could not contribute in two capacities simultaneously, i.e., one in the capacity of the firm and another in the capacity of karta of the Hindu undivided family, which is a separate entity and recipient of the commission. On appeal the first appellate authority upheld the view of the  AO  On further appeal the Hon’ble Appellate Tribunal held, that both Hindu undivided families had provided unsecured loans to the assessee, and the funds of the Hindu undivided family had been used by the assessee to financially support and enhance its business. In the peculiar facts the contribution of an individual, who helped the firm in two capacities, viz., first in the capacity of the partner and secondly as the karta of the Hindu undivided family could not be segregated satisfying and clearly establishing the factum of the services rendered towards payment of commission to the Hindu undivided family but the factum of use of the Hindu undivided family funds by the firm in the form of secured loan in the business of the assessee. The commission paid by the assessee to the Hindu undivided families was allowable. (AY. 2012-13, 2013-14)