TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the surplus income of the Durgha, in the hands of the managing trustee or nattamaigars, was assessable under section 41 of the Income-tax Act, 1922 as income receivable on behalf of the kasupangudars.
Analysis: Section 41 applies where income is received by a person who is entitled to receive it on behalf of another, and the section is concerned with representative receipt rather than the technical doctrine of vesting. The management of the Durgha and its properties was held under the scheme only in the sense of administration, and the nattamaigars had no beneficial interest in the surplus. Even if they were described as trustees, they were in substance managers receiving income for the benefit of the kasupangudars in definite shares. The scheme did not transfer ownership of the properties to them, but only vested management and administration in them. The balance after expenses was therefore held on behalf of the beneficiaries.
Conclusion: Section 41 applied, and the surplus income was assessable in the hands of the managing trustee in a representative capacity; the answer was in favour of the assessee.
Ratio Decidendi: For section 41 of the Income-tax Act, 1922, the decisive test is whether the person assessed receives or manages the income on behalf of others, not whether legal title vests in him; income held only for distribution to identifiable beneficiaries is assessable in a representative capacity.
TaxTMI 
TaxTMI 
