COMMISSIONER OF INCOME-TAX, MADHYA PRADESH vs MAHARAJA BAHADUR SINGH & ORS.

The Supreme Court held that the income derived from properties settled under trust deeds must be assessed in the individual capacity of the beneficiaries, not as representatives of their Hindu Undivided Families (HUF). The Court found that the High Court erred in interpreting the trust deeds, emphasizing that the intention of the donor must be ascertained from the document's language and surrounding circumstances. The Court reversed the High Court's decision, confirming the assessments made by the Income Tax Officer in the individual status of the beneficiaries under the Income Tax Act, 1961.