SETH BANARSI DAS ETC. vs WEALTH TAX OFFICER, SPECIAL CIRCLE MEERUT, ETC.

The Supreme Court upheld the validity of Section 3 of the Wealth-tax Act, 1957, stating that it is within Parliament's competence to legislate regarding Hindu undivided families under Entry 86 of List 1. The Court clarified that the term 'individuals' in Entry 86 encompasses groups of individuals, including Hindu undivided families, and that the fluctuating nature of coparceners' shares does not exclude them from taxation. The Court emphasized that legislative entries must be interpreted broadly, rejecting the appellants' claims that the section was ultra vires.