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Issues involved:
The issues involved in this judgment are whether the Commissioner (Appeals) had the authority to cancel assessments made in the case of a deceased individual and refund taxes to the taxpayers, and whether the assessments made in the case of the deceased were on a protective basis. Issue 1 - Authority of Commissioner (Appeals) to cancel assessments: The deceased individual, E. C. Cowasji, was assessed for certain years even after his demise. His widow, Mrs. Banoo E. Cowasji, was also assessed for the same years. The Commissioner (Appeals) found the assessments of the widow to be valid but deemed the assessments of the deceased to be void and illegal. The Commissioner directed the Income Tax Officer (ITO) to treat the deceased's assessments as protective and to cancel them, refunding the taxes to the relevant taxpayers. The Tribunal, however, held that the Commissioner (Appeals) did not have the authority to issue such directions regarding the deceased's assessments while deciding the widow's appeal. The Tribunal modified the Commissioner's order by removing the direction to cancel the assessments and refund the taxes. The High Court agreed with the Tribunal, stating that the Commissioner (Appeals) lacked the legal basis to intervene in the deceased individual's assessments while considering the widow's appeal. Issue 2 - Validity of assessments made on a protective basis: The Tribunal determined that the assessments made in the case of the widow were valid, while those made in the case of the deceased after his death were deemed invalid. The Commissioner (Appeals) had directed the ITO to treat the deceased's assessments as protective and to cancel them, which was later modified by the Tribunal. The High Court upheld the Tribunal's decision, emphasizing that the assessments in the widow's case were valid, and the Commissioner (Appeals) exceeded his jurisdiction by intervening in the deceased individual's assessments. In conclusion, the High Court answered the questions in the affirmative, ruling against the assessee, and directed that each party bear their own costs in the reference.
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