Hindu undivided family residence turns on control of its own affairs, not a coparcener's partnership business.

For residence under section 4A(b), the relevant "affairs" are those of the Hindu undivided family itself, meaning matters relevant to taxation and not the family's private or domestic affairs. A partnership entered into by a coparcener is a personal contractual partnership, not a partnership between the family and the other partners, even if the coparcener represents the family and accounts for profits to it. Because the family has no control over the partnership business, the existence of such business within the taxable territories does not by itself make the Hindu undivided family resident there under section 4A(b).

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Issues: Whether a Hindu undivided family became resident in the taxable territories merely because two coparceners carried on a partnership business within those territories.

Analysis: Under section 4A(b), a Hindu undivided family is resident unless the control and management of its affairs is situated wholly outside the taxable territories. The expression "affairs" refers to matters relevant to taxation and not to the private or domestic affairs of the family. A partnership entered into by a coparcener is a contractual partnership between the individual coparcener and the other partners; it is not a partnership between the family and the other partners. Even if the coparcener represents the family and is accountable to it for profits, the family has no control over the partnership business. The existence of a partnership business carried on by coparceners therefore does not make that business the affair of the Hindu undivided family.

Conclusion: The mere fact that coparceners carried on a partnership business within the taxable territories did not make the Hindu undivided family resident there under section 4A(b); the question was answered in the negative.

Ratio Decidendi: For residence under section 4A(b), the relevant "affairs" are those of the Hindu undivided family itself, and a partnership business carried on by a coparcener is not treated as the family's affair merely because its profits may enure to the family.

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