M/S. BADRI PRASAD JAGAN PRASAD vs COMMISSIONER OF INCOME TAX, U.P., LUCKNOW

The Supreme Court held that the assessee, a Hindu undivided family, was entitled to relief under Section 25(4) of the Income Tax Act, 1922 for the assessment year 1949-50. The Court clarified that the succession of the family business to a partnership firm occurred on 12th October 1948, which marked the commencement of the previous year relevant to the assessment year 1950-51. Therefore, the Tribunal's decision to deny the benefit for 1949-50 was incorrect, as the assessee was entitled to relief for that year.