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TMI Blog1993 (8) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 as Wealth-tax References Nos. 3A, 3B, 3C and 3D of 1981, respectively. As the point which arises for consideration in these references is identical, all these references are heard together and disposed of by this common judgment. Smt. Ansuyaben expired on June 3, 1968, leaving behind her a will dated February 23, 1968. Under the will, she bequeathed all her properties to her children, viz., Snehlata R. Parikh, the assessee, in these cases, and her brother, Jitendra Ramniklal. They were also made executors of the will. According to the will, the two executors had to incur expenditure for obtaining probate or succession certificate after the demise of Ansuyaben, had to perform the after death ceremony according to the status of the fami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Commissioner made a slight modification in the order passed by the Wealth-tax Officer. He agreed with the view that the half share which the assessee got in Ansuyaben's estate was rightly included in the assessee's taxable wealth. He then held that as she was given a share only in the residue of the estate which remained after the shares were given to Jitendra, only half share in the residue of the estate of the deceased could be regarded as her taxable wealth. He, therefore, directed the Wealth-tax Officer to recompute the correct value of the assessee's interest in the estate. The assessee then approached the Tribunal. The main contention raised on behalf of the assessee before the Tribunal was that no part of the estate of Ansuyaben wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1980] 125 ITR 67. He submitted that Navnitlal Sakarlal's case was decided when section 19A was not on the statute book. He further submitted that in view of the specific provisions made in section 19A, the net wealth of the estate of a deceased person is now chargeable to tax in the hands of the executor or executors. Moreover, as provided in sub-section (5) of that section, separate assessments have to be made under the said section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests. Thus, according to learned counsel for the assessee, till complete distri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, there was a specific provision with respect to the liability of the executor, no such provision was made in the Wealth-tax Act till April 1, 1965. Therefore, this court was obviously required to decide the question of liability of the executor and the legatee by referring to the general principles of law and sections 3 and 4 of the Wealth-tax Act. This court was, therefore, required to determine the liability after ascertaining to whom the asset belonged. Now, a material change is made in this behalf. The Legislature has stepped in and now it is provided that the net wealth of the assets of the deceased's beneficiaries shall be chargeable to tax in the hands of the executor or executors. In view of this change in the position of law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in the will require the residue to be so held. Section 211(1) of the Succession Act constitutes the executor of a deceased person his legal representative for all purposes and vests all the property of the deceased in the executor. Though no time-limit is fixed by the section for the duration of the office of executor with its powers and rights, and in this sense an executor remains an executor for an indefinite time, the property, which he has in the estate that devolves upon him and over which his powers extend, does not remain his indefinitely. By his assent to the disposition in the will they become operative, the executor is pro tanto divested of the property which was his virtute officii, and the legatees have vested in them as own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, we are not bound to follow the said decision. In view of the express and categorical language of section 19A, the net wealth of the estate of a deceased person would remain chargeable to tax in the hands of the executor or executors. This liability of the executors will continue till the date of complete distribution of the estate to the beneficiaries according to their several interests. Sub-section (6) makes it clear that if any assets of the estate are distributed to, or applied to the benefit of, any specific legatee of the estate, then that estate has to be excluded from computation of the net wealth represented by the executor and the estate so excluded, to the extent such assets are held by the legatee, will have to be included ..... X X X X Extracts X X X X X X X X Extracts X X X X
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