COMMISSIONER OF INCOME-TAX, MADRAS vs MANAGING TRUSTEES, NAGORE DURGHA, NAGORE

The Supreme Court upheld the High Court's ruling that Section 41 of the Indian Income Tax Act, 1922 applies to the income received by the managing trustees of a Muslim Wakf, known as Nattamaigars, on behalf of the beneficiaries, Kasupangudars. The Court clarified that the technical doctrine of vesting does not apply, as the trustees are deemed to receive income for the benefit of others, despite the legal vesting of property. The Court concluded that the Nattamaigars were managers of the properties and entitled to receive income on behalf of the beneficiaries, affirming the High Court's decision in favor of the assessee.