Residence of a Hindu undivided family turns on where control and management of its affairs are exercised; acts in India established residence.

A Hindu undivided family is resident in British India under Section 4A(b) of the Indian Income-tax Act, 1922, unless the control and management of its affairs are situated wholly outside British India. The test extends beyond family business to other family affairs, including immovable property, litigation, and income-tax proceedings. Here, the karta's acts in British India in attending to family litigation, tax matters, and payment of tax were exercises of controlling authority over the family's affairs. On those facts, the control and management of the family affairs were not wholly outside British India, and the family was held resident there.

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Issues: Whether a Hindu undivided family was resident in British India under Section 4A(b) of the Indian Income-tax Act, 1922, on the facts showing the karta's visits to British India and his acts in relation to family property, income-tax proceedings, and litigation.

Analysis: Section 4A(b) deems a Hindu undivided family resident in British India unless the control and management of its affairs is situated wholly outside British India. The test is not confined to the family business alone, but extends to the family's other affairs, including immovable property and proceedings connected with that property. The karta, while in British India, attended to the family litigation, income-tax matters, and payment of tax, and those acts were done in exercise of his controlling authority over family affairs. On the proved facts, the control and management of the family affairs were not situated wholly outside British India.

Conclusion: The family was resident in British India within Section 4A(b), and the reference was answered in favour of the Revenue.

Final Conclusion: The decision confirms that residence of a Hindu undivided family for income-tax purposes depends on whether its affairs are controlled and managed wholly outside British India, and the exercise of control in British India over part of those affairs is sufficient to attract residence.

Ratio Decidendi: For a Hindu undivided family, residence under Section 4A(b) is determined by whether the control and management of its affairs are wholly outside British India; if the karta exercises controlling acts in British India in relation to family affairs, the family is resident there.

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