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TMI Blog1962 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... which was receivable by six beneficiaries or the two sets of beneficiaries referred to in the will separately? (4) Whether section 10 of the Mysore Agricultural Income-tax Act, 1957, is the section applicable to the case and whether the tax is to be levied upon and recovered from the executors and trustees in like manner and to the same extent as it would be levied by and recoverable from the beneficiaries? and (5) Whether the assessments should be made separately on the executors and trustees on behalf of each of the six beneficiaries or in the alternative on behalf of each of the two sets of beneficiaries referred to in the will? The material facts are as follows: One Mr. George P. White, who was a planter at Coorg, died on January 31, 1955. Before his death, he had executed a registered will dated March 4, 1954. Under that will several bequests were made to some of which detailed references will be made in the course of the judgment. There is dispute between the petitioners and the respondent as regards the extent of tax liability under the Act for the assessment year 1958-59, the account year being the financial year 1957-58. According to the department, the execut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rring nature could not be met from the sources indicated above, the executors were authorised to make good the deficit from out of the income of the coffee estates left by the testator. It is unnecessary to refer to the non-recurring bequests made under the will. We are told that those bequests have been more or less fully met. Under clause 4(d) of the will, the testator directed the executors to pay Mrs. Gertrude Hillman, Retired Matron of Civil Hospital, Mercara, a sum of ₹ 100 per month for life commencing from the month of his demise. Under clause (e) of paragraph 4, the executors were directed to pay Kottayi Ruby Ammal, a sum of ₹ 50 per month for life commencing from the month of the demise of the deceased. Under clause (i) of paragraph 4, the executors were directed to pay Bernadett Hunes, a sum of ₹ 50 per month so long as he is undergoing training. Under the will, Mrs. Mabel Francis Amos alias Mrs. Maurice alias Mrs. White is entitled to get a sum of ₹ 250 per month for her life. One Michael alias Thambi is entitled to get a sum of ₹ 100 per month during his lifetime. The executors were directed to pay for the education of the testator' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge of the agricultural income-tax assessed as payable by such person or any agricul- tural income-tax which would have been payable by him under this Act if he had not died. (2) Where a person dies before the 1st June in any year or before he is served with a notice under sub-section (2) of section 18 or under section 36, as the case may be, his executor, administrator or other legal representative shall, on the serving of the notice under sub-section (2) of section 18 or under section 36, as the case may be, comply therewith, and the Agricultural Income-tax Officer may proceed to assess the total agricultural income of the deceased person as if such executor, administrator or other legal representative were the assessee. (3) Where a person dies without having furnished a return which he has been required to furnish under section 18 or having furnished a return which the Agricultural Income-tax Officer has reason to believe to be incor- rect or incomplete such officer may make an assessment of the total agricul- tural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1922. The only material difference between these two provisions is that whereas the executor as such is not included in section 41(1) of the Indian Income-tax Act, he is included in section 10 of the Act. Section 10 provides that tax should be levied on the executor in the like manner and to the same amount as it would be leviable upon and recoverable from the person on whose behalf such agricultural income is receivable and all the provisions of this Act shall apply accordingly. It must be remembered that an executor appointed under a will is receiving income on behalf of the beneficiaries mentioned in the will. He has no interest of his own in the income in question. Agricultural income of the estate bequeathed under the will is taxed in the hands of the executor only as a representative of the beneficiaries under the will. Therefore the measure of the liability of the executor should be co-extensive with that of the several beneficiaries. Section 10 is mandatory in its language. The basic idea underlying that provision is that the liability of the executor should be co-extensive with that of the beneficiaries and in no sense a wider or a larger liability: see Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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