HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Commissioner of Income-tax, Bombay v. Smt. Indira Balkrishna
Civil Appeals Nos. 249 and 250 of 1958
[1960] 3 SCR 513 ·
Indian Income-tax Act, 1922: sections 3 and 9(3)
Sources & disclosures includedDownload original judgment / order
3-judge bench · S. K. Das · J. L. Kapur · M. Hidayatullah
Assessment years: 1950-51, 1951-52
01 · Facts of the case
Three co-widows inherited their husband’s estate. Revenue assessed them as an association of persons, although their shares in property income were equal and the record did not show a joint enterprise producing the dividends and deposit interest.
Source: Primary report: SCR 514–518
02 · Discussion by the Hon’ble Court
An association under the then section 3 required persons joining in common purpose or action to produce income, profits or gains. Mere joint receipt was insufficient on these facts. The Court cautioned that there was no universal factual formula and affirmed the ascertainable one-third property-income shares.
Source: Primary report: SCR 517–521
03 · Judicial decision
The widows had not combined in an income-producing joint enterprise and could not be assessed as an association of persons on the findings. The High Court’s negative answer was correct.
Source: Primary report: SCR 520–521
04 · Outcome / in whose favour
Both Revenue appeals were dismissed with costs and one hearing fee.
Source: Primary report: SCR 521
05 · AKHB REVIEW POINT
Identify evidence of concerted activity rather than infer an association solely from inheritance or joint receipt. The test is that of the historical statutory text; any later amendments and current treatment require separate verification.
Source: Primary report: SCR 518–521
Source & verification
Download original judgment / order · Open cited source rendition
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Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
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General legal and tax research only; not legal or tax advice. Verify the complete judgment, applicable statutory version and subsequent treatment before reliance. AKHB REVIEW POINT is editorial analysis, not the Court’s holding.