Guardians' income for minor coparceners remained taxable as Hindu undivided family income under section 40.

Income received by guardians for minor coparceners was held assessable under section 40 on the footing of a Hindu undivided family. The Court reasoned that, on the father's death, the minors continued to constitute a joint family and the business remained joint family property until a partition was brought about by positive action. A later order for separate accounting did not amount to partition or affect the relevant assessment year. The guardians were therefore chargeable in the same manner and to the same extent as the minors would have been if competent.

---

---

Issues: Whether the income received by guardians on behalf of minor coparceners was assessable under section 40 as the income of a Hindu undivided family.

Analysis: The minors, on the death of their father, continued to constitute a Hindu undivided family and the business remained joint family property until a partition was brought about by positive action. The subsequent order permitting separate accounting did not effect a partition and had no bearing on the relevant assessment year. Where a guardian carries on business on behalf of minors and receives income for them, section 40 governs the assessment and the guardians are chargeable in the same manner and to the same extent as the minors would have been if they were of full age.

Conclusion: The income was correctly assessable in the hands of the guardians treating the minors as constituting a Hindu undivided family.

Final Conclusion: The reference was answered in favour of the revenue and the assessment on the footing of a Hindu undivided family was upheld.

Ratio Decidendi: Where minors form a Hindu undivided family and income is received through guardians on their behalf, section 40 requires assessment in the status that would attach to the minors if they were competent to be assessed themselves.

---