COMMISSIONER OF INCOME-TAX, MADHYA PRADESH vs M/S. BINODIRAM BALCHAND, INDORE

The Supreme Court held that the assessee, a Hindu undivided family, was entitled to adopt the financial year ending March 31, 1950, as the relevant previous year for income assessment under the Income Tax Part B States (Taxation Concessions) Order, 1950. The Court ruled that since the assessee was a resident of a Part B State, it was entitled to the benefits of the Order, specifically paragraphs 5, 6, 11, and 12, which allowed for concessional rates of income tax and super tax on dividend income. The judgment followed the precedent set in C.I.T., M.P. v. Kanchanbai, confirming the applicability of concessional tax rates on income derived from a Part A State.