COMMISSIONER OF INCOME-TAX,HYDERABAD vs SRI RAJAREDDY MALLARAM

The Supreme Court held that the order of assessment made by the Income-tax Officer under Section 23(4) of the Indian Income Tax Act, 1922 was valid, and the respondent was liable for the tax determined therein. The Court clarified that an association of persons can be assessed as a unit or individually, and this principle applies even post-dissolution. The Court rejected the notion that only members served with notice of assessment are liable, affirming that 'tax payable' under Section 44 refers to the tax the association would have owed had it not dissolved.