V. VENUGOPALA VARMA RAJAH vs COMMISSIONER, AGRICULTURAL INCOME TAX, TRIVANDRUM, KERALA

The Supreme Court held that under Section 9(1) of the Kerala Agricultural Income-tax Act, 1950, the income derived from properties allotted to male members of a Hindu undivided family is deemed to be the income of the family if it is used to discharge family obligations. The Court clarified that the arrangement did not confer absolute rights to the properties, and the income was considered as reaching the family as soon as it reached any member. The appeal was dismissed, affirming the lower courts' decisions that the income was taxable as that of the family.