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Assessment of income for a Hindu undivided family residing in British India, determination of ordinary residence for tax purposes, interpretation of Section 4-B of the Indian Income-tax Act. Analysis: The case involved an assessment on a Hindu undivided family, where the family was resident in British India and the manager was also treated as ordinarily resident in British India. The crucial issue was whether the family could be deemed not ordinarily resident in British India, impacting the tax assessment of income from tea estates in Ceylon. The key question referred to the court was whether the family should be considered not ordinarily resident in the material year of account under Section 4-B of the Income-tax Act. The facts revealed that the family consisted of two brothers who inherited properties, including a tea estate, under their father's will. The father was a resident of British India, and upon his death, one of the brothers became the manager of the family. The contention was whether the family could be considered ordinarily resident in British India based on the manager's residency status. Section 4-B of the Act outlined the criteria for determining ordinary residence for a Hindu undivided family, emphasizing the manager's ordinary residence. The court analyzed the provisions of Section 4-B and concluded that the test for determining the ordinary residence of a joint Hindu family in British India relied on the manager's residence status. The court rejected the argument that only the current manager's residency should be considered, stating that the periods of residence of successive managers should be taken into account. As the family had been in existence before the father's death, and the father was a resident of British India, the conditions of Section 4-B were deemed satisfied. Ultimately, the court upheld the decision of the Income-tax Appellate Tribunal, ruling that the family must be considered ordinarily resident in British India for the year of account as per Section 4-B of the Income-tax Act. The assessee was directed to pay costs to the Commissioner of Income-tax. In conclusion, the judgment clarified the interpretation of Section 4-B regarding the ordinary residence of a Hindu undivided family for tax purposes, emphasizing the significance of the manager's residency status in determining the family's tax liability in British India.
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