Tenancy-in-common and individual assessment govern estate income where a will only arranges collection and distribution.

Where agricultural estate income is bequeathed in specific undivided shares, the beneficiaries hold as tenants-in-common until partition by metes and bounds, and assessment must be made on each person's individual share under the special charging provisions. A will-based arrangement for collecting and distributing income does not, by itself, create an association of individuals or a common enterprise. The existence of a charitable bequest does not alter the character of the beneficiaries' undivided ownership, and the income attributable to each sharer remains separately assessable.

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Issues: Whether the agricultural income from the estate was assessable as income of an association of individuals, or whether the legatees held the property as tenants-in-common so that assessment had to be made on the individual shares under the governing provisions.

Analysis: The property was bequeathed in specific shares to the widow, sons and daughters, and the existence of a charitable bequest did not prevent those legatees from becoming tenants-in-common. Until partition by metes and bounds, they held the property in undivided shares. The special provisions governing tenants-in-common and property managed under a written agreement appointing a manager required assessment of the income attributable to each entitled person individually. The arrangement for management under the will was only for collection and distribution of income and did not amount to a combination for the production of income or gain. The legatees and sons-in-law did not unite in a common enterprise and therefore did not constitute an association of individuals.

Conclusion: The income could not be assessed as that of an association of individuals and had to be assessed on the footing that the relevant sharers held the property as tenants-in-common with individual liability to assessment.

Ratio Decidendi: Where property is bequeathed in specific undivided shares, the beneficiaries hold as tenants-in-common, and a management arrangement under the will for collection and distribution of income does not by itself create an association of individuals; assessment must follow the special individual-based charging provision.

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