1968 (10) TMI 22 - HC - Income Tax

Expenditure Tax Act had been suspended and later revived by the Finance Act, 1964 - After the death of the assessee, the assessee s widow was called upon to furnish a return of the expenditure incurred by the deceased from 1.7.62 to 30.6.63 - whether expenditure of assessee is liable to tax - Held, yes

Summary

The High Court of Madras dismissed a petition regarding the application of section 53 of the Finance Act, 1964, to expenditure incurred by a deceased individual. The court held that expenditure-tax would apply to the period from July 1, 1962, to March 11, 1963, despite the individual's death. The court clarified that the charging section applied to expenditure incurred in the previous year, and section 53 of the Finance Act, 1964, did not depart from this scheme. The petition was dismissed with costs.