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TMI Blog1984 (2) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the appeal order. For that it may be held that the payment of Rs. 23,039 was a payment of "ADVANCE TAX". 2. To appreciate the contention of the assessee, it is necessary to recall the facts of the case in brief. The assessee is the legal heir of late R. G. Saharia who died in March, 1975. He filed his return of income for asst. yr. 1977-78 as an individual. In this he declared his income from various sources, viz. salary, 1/7th income from the Estate of late R. G. Saharia, A.O.P., Managing Director s remuneration, Managing Partner s commission, Director s monthly fees and interest. The ITO computed the income from the above sources at Rs. 71,816. The assessee had further claimed a deduction of interest paid by him amounting to Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment cannot have his share brought in his own assessment. 3. The above finding of the ITO has been confirmed by the ld. AAC who made the following observations while confirming the said order: "So far as ground Nos. 1 and 2 are concerned, I have held in my order of even date on Appeal No. 230-Crib/80-81 in the estate of late R. G. Saharia for the asst. yr. 1976-77 that the estate shall continue to be assessed on the income or loss arising from its assets till such time as the assets are not actually distributed amongst the heirs in accordance with s. 8 of the Hindu Secession Act, 1956. Therefore, no claim for deduction on account of 1/7th share of the loss in the estate of late R. G. Saharia shall be allowed." 4. It is correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een a loss therein. The ITO is entitled to be satisfied in this regard. But he cannot refuse to take into account the income or loss arising from such inherited assets and liabilities on the ground that the said income or loss is assessable elsewhere, for, in law, it is not so assessable, unless it can be shown that the assessee alongwith other legal heirs had entered into in a joint enterprise to earn income from the joint legacy left behind by late R. C. Saharia. Whether or not there is a joint enterprise, will have to be ascertained with regard to the facts of the case. The ITO will be entitled to go into this question also while determining as to whether or not the assessee has income or loss from the legacy or from the A. O. P. 5. Wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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