INSPECTOR ASSISTANT COMMISSIONER OF AGRICULTURAL INCOME TA vs V.K. RAMUNNI PANIKKAR, RECEIVER OF ZOMORINESTATE

The Supreme Court held that under Section 7(3) of the Hindu Succession Act, 1956, the sthanam property is deemed divided among the sthani and the members of his tarwad immediately before the sthani's death. The Court ruled that the liability for agricultural income tax under Section 24(1) of the Kerala Agricultural Income-tax Act, 1950, rests solely with the personal heirs of the deceased sthani, as they are the only ones entitled to the income generated during the relevant period. The assessment against the successor sthani was invalid as he never legally became the sthani, and thus the demand for tax from the tarwad members was quashed.