CHARANDAS HARIDAS AND ANOTHER vs THE COMMISSIONER OF INCOME-TAX,BOMBAY NORTH, KUTCH, SAURAS

The Supreme Court ruled that the income from managing agency firms, previously assessed as Hindu undivided family income, should be treated as the separate income of divided members following a partial partition agreement. The Court held that the partition was valid and effective for income-tax purposes, as it was not merely a pretence. Consequently, the income was not assessable as that of the Hindu undivided family under the Income-tax Act, 1961, Section 66(2).