9911796707
TMI Blog1983 (5) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... heirs. The estate of the deceased is being administered by the Administrator, Mr. A. Sivasailam, the eldest son of the deceased. The estate is being assessed to wealth-tax under s. 19A of the WT Act (Assessment in the case of executors) even now. After the determination of the estate duty and payment thereof the assets and liabilities of the estate were partially distributed to the five legal heirs during the year ended 31st March, 1974. On 9th Feb., 1974, 39,000 shares in Amalgamations Ltd. were distributed to the five legal heirs, each getting 7,800 shares. On 31st March, 1974 the liabilities were also transmitted to the extent of the amounts due to the following five legal heirs, the shares of each heir being as under: "(i) Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s due to the other parties mentioned above, represent monies borrowed by the Constituted Attorney/Administrator to the Estate, for payment of wealth-tax, gift-tax etc. pertaining to the estates of late Anantharamakrishnan." Then he held as follows: "The WTO has not been correct in making the observation that the liabilities had been incurred in relation to the shares just because they were inherited together. The circumstances that the value of the shares was nil does not disentitle the appellant to a deduction in respect of the liabilities. Whether there is a personal liability or not depends upon the appellant's own volition. The facts here shown that the appellant has undertaken to discharge the liability. As such she is entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the wealth-tax is not chargeable. It is pertinent to note that that specific finding has not been also challenged in the grounds of appeal. The only case put forward in the grounds is that of the contingent liability alone. Further, it is long after the shares were obtained by late S. Anantharamakrishnan that these debts were incurred. There is great dearth and absolute paucity of materials to connect the shares with the loans. That is perhaps the reason why it was not raised in departmental grounds. Just because the executor allotted simultaneously the shares and the liabilities to the assessee, it is not possible by way of an inference to say that the liabilities were incurred in relation to the exempted assets. What the executor did wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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