1993 (10) TMI 110 - AT - Income Tax

Summary

Issues:
1. Dispute over addition of income from deceased husband's estate to the widow's income for two assessment years.
2. Application under Section 154 of the IT Act to rectify a mistake apparent from the record.
3. Admissibility of additional ground challenging the jurisdiction of the order passed under Section 154.
4. Difference of opinion between the Members of the Division Bench leading to reference to the Third Member.
5. Interpretation of the applicability of Section 168 in the case of the widow inheriting the estate of her deceased husband.

Analysis:
1. The appeals raised a dispute regarding the addition of income from the deceased husband's estate to the widow's income for two assessment years. The CIT(A) initially deleted the addition for one year but later confirmed it for the other year, leading to the appeal before the Tribunal.

2. An application under Section 154 of the IT Act was filed to rectify a mistake apparent from the record. The ITO contended that the CIT(A) had erred in assuming the existence of a will left by the deceased husband, leading to the deletion of the addition. The CIT(A) accepted the ITO's contention and confirmed the addition.

3. The assessee sought to raise an additional ground challenging the jurisdiction of the order passed under Section 154. The Judicial Member admitted this ground and set aside the order of the CIT(A) based on the debatable legal points involved in the decision.

4. Due to a difference of opinion between the Members of the Division Bench, the matter was referred to the Third Member for resolution. The Third Member directed the Division Bench to decide the matter according to the majority decision and also address the merits of the appeal.

5. The interpretation of the applicability of Section 168 was crucial in determining the tax liability of the widow inheriting the estate of her deceased husband. The Tribunal, after considering relevant case laws and the incomplete administration of the estate, held that the widow was not liable to be assessed for the income from the estate, reversing the decisions of the lower authorities.

This detailed analysis highlights the key issues raised in the legal judgment, the arguments presented by the parties, and the final decision rendered by the Tribunal after thorough consideration of the legal principles and precedents cited.