Survivorship income in a Hindu undivided family was treated as the surviving member's individual taxable income under prior binding interpretation.

Under Sec. 55 of the Indian Income Tax Act, 1922, income received by right of survivorship by the sole surviving male member of a Hindu undivided family was held assessable in his hands as his individual income. The Board treated an earlier interpretation of the meaning of "Hindu undivided family" as controlling, because the material facts were not materially different from those previously considered. The prior binding construction therefore governed the present matter, and the High Court's contrary view was displaced.

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Issues: Whether income received by right of survivorship by the sole surviving male member of a Hindu undivided family is taxable in his hands as his own individual income for the purpose of assessment to super-tax under Sec. 55 of the Indian Income Tax Act, 1922.

Analysis: The Board noted that the meaning of "Hindu undivided family" in Sec. 55 had already been examined in an earlier decision, and that the earlier ruling had reached a conclusion contrary to the view taken by the High Court. It found that the facts of the present case did not differ in any material respect from those earlier considered, so the prior decision governed the appeal.

Conclusion: The answer was in the affirmative. The income received by right of survivorship by the sole surviving male member could be taxed in his hands as his own individual income for the purposes of super-tax under Sec. 55 of the Indian Income Tax Act, 1922.

Final Conclusion: The appeal succeeded and the High Court's order was reversed, with costs awarded to the appellant.

Ratio Decidendi: Where the material facts are indistinguishable from an earlier binding interpretation of the same taxing provision, that interpretation governs the later case and the income so received is assessable as the individual income of the surviving member.

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