THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY, BOMBAY vs NANDLAL GANDALAL.

The Supreme Court held that under Section 4A(b) of the Indian Income-tax Act, 1922, 'control and management' refers to de facto control, and the 'affairs' of a Hindu undivided family must be interpreted in light of Hindu law rather than the Indian Partnership Act, 1932. The Court ruled that the income from partnerships entered into by coparceners with strangers does not constitute the affairs of the Hindu undivided family, even if the income belongs to it. Consequently, the assessment made by the Income-tax Officer was incorrect, and the High Court's decision to uphold the Income-tax Appellate Tribunal's ruling was affirmed.