MOHAMED NOORULLAH, REPRESENTING THE ESTATE OF LATE KHA vs THE COMMISSIONER OF INCOME-TAX, MADRAS.

The Supreme Court held that the business carried on by the heirs of a deceased Mohamedan, which was managed by court-appointed receivers, constituted an 'association of persons' under Section 3 of the Indian Income-tax Act, 1922. The Court ruled that the income from the business was assessable as the income of this association, rejecting the appellant's claim for separate taxation of co-heirs' shares. The ongoing suit for estate administration did not affect the tax assessment, affirming the High Court's decision and disapproving S. C. Mazumdar's case to the contrary.