Ordinary residence of Hindu undivided family may depend on successive managers' residence under Section 4-B.

A Hindu undivided family was treated as ordinarily resident in British India under Section 4-B because its manager satisfied the ordinary-residence test applicable to an individual under Section 4-A(a). The court held that, where the family continued without interruption, the statute did not confine the enquiry to the manager in the year of account alone, and the residence of successive managers could be counted. On the facts, an earlier manager had been resident in British India, so the statutory conditions were met and the reference was answered against the assessee and in favour of the Revenue.

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Issues: Whether a Hindu undivided family is to be treated as ordinarily resident in British India under Section 4-B of the Indian Income-tax Act by reference to the residence of its manager, and whether the periods of residence of successive managers can be counted for that purpose.

Analysis: Section 4-B deemed a Hindu undivided family to be ordinarily resident if its manager was ordinarily resident in British India, and the manager's status had to be tested by the conditions applicable to an individual under Section 4-A(a). The family had continued in existence throughout the relevant period, and the earlier manager had admittedly been resident in British India. Nothing in Section 4-B indicated that only the residence of the manager during the year of account could be considered or that the residence of prior managers should be ignored. On the facts, the statutory conditions were satisfied.

Conclusion: The assessee was ordinarily resident in British India in the year of account, and the answer to the reference was against the assessee and in favour of the Revenue.

Ratio Decidendi: The residential status of a Hindu undivided family under Section 4-B depends on the ordinary residence of its manager, and where the family continues without interruption, the residence of successive managers may be taken into account in applying the statutory test.

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