Ordinary residence of HUF: successive managers' residence periods can be aggregated to meet statutory residence tests.

Ordinary residence of an HUF is determined by applying the individual residence criteria applicable to its manager; where the family continues, periods of residence in British India of successive managers during that continued existence count toward the manager's statutory residence tests. The analysis applies the individual tests in Section 4-A(a) and Section 4-B(a) to the manager and treats successive managers' residence as aggregable for satisfying the nine out of ten or two out of seven tests. Operatively, an HUF is to be deemed ordinarily resident when the combined residence of successive managers meets those statutory requirements.

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Issues: Whether a Hindu undivided family (HUF) is to be deemed ordinarily resident in British India in the year of account within the meaning of Section 4-B of the Income-tax Act where the residence of successive managers (including the previous manager) during the relevant preceding years is relied upon to satisfy the residence test laid down for the manager.

Analysis: The statutory test for an HUF being ordinarily resident in British India is tied to the ordinary residence of its manager and must be determined by applying the individual residence criteria in Section 4-A(a) and Section 4-B(a). The manager for the continuing joint family is to be treated in the context of the family's continued existence; periods of residence in British India of successive managers during that continued existence are not excluded by Section 4-B and therefore count for satisfying the prescribed nine-out-of-ten years or two-out-of-seven years tests applicable to an individual manager.

Conclusion: The HUF is to be deemed ordinarily resident in British India in the year of account because the residence of the previous manager (who was resident in British India throughout) together with the residence of the present manager satisfy the requirements of Section 4-B read with Section 4-A(a) of the Income-tax Act, 1922.

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