9911796707
TMI Blog1984 (2) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... Factory, Makum (3) M/s Joypore Tea Chest Fitting Factory (4) M/s Saharia Industrial Corporation, Dibrugarh 2. The legal heirs of the deceased decided that they would not continue the business in question carried on by the deceased and that assets and liabilities of the said business would be transferred by them to a partnership firm to be formed as R.G. Saharia Industries. Accordingly, the assets in question were transferred by the legal heirs to the said firm. The sale price of the said assets was not paid by the said firm to the legal heirs. It remained unpaid with it and in respect of such unpaid sale price, the said firm paid interest which during the accounting year corresponding to the asst. yr. 1976-77 amounted to Rs. 27,720 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Accordingly, he computed the assessee's income on the above footing. While doing so, he made two additions of Rs. 9,267 on account of legal charges and Rs. 4,179 on account of other expenses, viz., postage, telegram, journey and conveyance, interest and discount etc. as the aforesaid expenses had been incurred in connection with the Brahmaputra Tea Estate which was a closed business and from which there was no business income to the AOP. 5. The assessee assailed the above order of the ITO before the ld. AAC. But he rejected the assessee's pleas and confirmed the order passed by the ITO. 6. The assessee assails the above finding of the ld. AAC and pleads that there would not have been an AOP in respect of the interest income as no join ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... left the unrealised sale price with the firm of R.G. Saharia Industries and interest has accrued or arised thereon, such income could not be said to have been earned by an AOP. The right of every legal heir in the said income has been earned by him by dint of his succession. Even though the interest income has not been separately taken by each individual legal heir, the income cannot be assessed jointly because the share of each individual legal heir is ascertained and definite. The mere fact that the certificate of succession has not yet been issued would not postpone the vesting of the property in the legal heirs. It vests by devolution at the moment of the death of the deceased. The certificate of succession merely formalises such vestin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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