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TMI Blog1988 (2) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of Rs. 36,462 arising from properties settled on Venkatesh Trust for the benefit of the assessee. The learned CIT (Appeals) deleted this addition following order of the Tribunal dated 27-11-1979 in ITA No. 620 (Mds.)/79 in the case of the assessee for assessment year 1977-78, wherein the Tribunal held that similar income during minority of Venkatesh could not be included in assessee's hand. The Income-tax Officer made this addition as according to him the order of the Tribunal has not become " final ". However, as the matter is directly covered by the order of the Tribunal, we see no justification to interfere. The order of the CIT (Appeals) on this issue is accordingly upheld. 2. The second issue pertains to addition of income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of C. R. Rajendran as " Executor " of late Shri Ramachary under section 168(2) of the Income-tax Act vide order dated 10-3-1984 by the 7th Income-tax Officer, Madurai-2. The above assessment notwithstanding, the Income-tax Officer while assessing Venkatesh added this income in the minor's hands, as according to him, there was no difficulty in settling and distributing the assets left by Shri Ramachary among the various legatees, as laid down by the Testator. According to the Income-tax Officer, Shri C. R. Rajendran was managing the asset bequeathed to minor legatee as his natural guardian and not as " Executor " of the testator. The Income-tax Officer while treating the sum of Rs. 1,08,204 as income of minor also observed as under :--- " I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned departmental representative once again reiterated the points made by the Income-tax Officer for assessing income derived from the estate of late Shri C. S. Ramachary in the hands of the assessee. He submitted that the assessee was the sole beneficial owner of the estate and entire income accrued to him notwithstanding his minority as there was nothing awaiting completion of administration of the estate. Shri C. P. Rajendran, according to the learned departmental representative, was only a trustee of his minor child and could not be assessed as an " executor ". 5. Shri K. J. Rebello, the learned counsel for the assessee disputed that the execution of the will or the administration of estate was complete. It was pointed out that as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g regard to the specific directions contained in the will and provision of section 211 of the Indian Succession Act, we are unable to share the view that immediately on death of late C. S. Ramachary, his estate automatically vested in minor Venkatesh. In our opinion, the estate vested and shall continue to remain vested in Shri C. R. Rajendran as executor and representative of the deceased till the minor attains majority. In these circumstances, executorial functions cannot be treated as completely performed and Shri Rajendran cannot be treated as trustee or representative of the minor. During the course of hearing of this appeal, we were not shown any provision under which specific directions contained in the will could be disregarded and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat income of estate has already been assessed in the hands of the executor and it has not been shown that any portion of the income which has already been assessed in the hands of the executor has been directed to be " excluded ". As per mandate of the above sub-section, only income " so excluded " could be assessed in the hands of the legatee. Without showing that income already assessed in the hands of the executor has been excluded addition in the hands of the assessee could not be made. We have already held that estate of the deceased remains vested in the executor and the administration of estate cannot be treated as complete. In the above circumstances, the revenue rightly assessed the income of the estate of the deceased under sec. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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