W. O. HOLDSWORTH AND OTHERS vs THE STATE OF UTTAR PRADESH

The Supreme Court interpreted Section 11(1) of the U.P. Agricultural Income-tax Act, 1948, determining that trustees of a trust do not hold land on behalf of annuitants but rather that each annuitant has a separate interest in the agricultural income derived from the trust property. The Court held that the appellants, as trustees, were liable to pay agricultural income-tax on the total income received, rejecting the appellants' argument for tax computation based on the aggregate sums payable by each annuitant. Consequently, the appeal was dismissed, affirming the High Court's decision.