Extended statutory definition of "brother" governs concessional tax rate for a Hindu undivided family
Section 10 of the Orissa Agricultural Income-tax Act treated a Hindu undivided family's agricultural income as that of one individual, but the Schedule granted a concessional rate where the family consisted of brothers only. The Explanation to the Schedule enlarged the meaning of "brother" to include the son, son of a son, and widow of a brother. Read with that Explanation, the concession had to be applied in the expanded statutory sense, so a family composed of the sons of deceased brothers still qualified as consisting of brothers only and was entitled to the special rate.
Issues: Whether, for the purpose of the special rate under the Schedule to the Orissa Agricultural Income-tax Act, 1947, a Hindu undivided family composed of the sons of deceased brothers could still be regarded as a family consisting of brothers only.
Analysis: Section 10 of the Act treated the total agricultural income of a Hindu undivided family as the income of one individual, but the proviso and the Schedule granted a special rate where the family consisted of brothers only. The Explanation to the Schedule gave the word "brother" an extended meaning by including the son and the son of a son of a brother, as well as the widow of a brother. Reading the Explanation into the proviso and the Schedule, the expression "consisting of brothers only" had to be understood in the enlarged statutory sense. On that interpretation, a family made up of the sons of deceased brothers remained within the class entitled to the special rate.
Conclusion: The family was rightly treated as consisting of brothers only, and the special rate under the Schedule was available to it.
Ratio Decidendi: Where a statute gives an extended definition to a class of persons for the purpose of a concessional tax provision, that expanded definition must be read into the concession clause, and the benefit cannot be denied on a narrow literal reading inconsistent with the statutory explanation.
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