1985 (6) TMI 7

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..... in the personal assessments of the assessee under section 168(4), Income-tax Act, 1961 ? (2) Whether, in the alternative, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the administration of the estate was not completed since the estate duty payable on the estate remained unpaid till the end of the relevant previous years and, therefore, the income from the estate was not includible in the personal assessments of the assessee as the residuary legatee ? " The relevant facts may be stated hereunder. The assessee, Mrs. A. Ghosh, is the sole executrix and the sole residuary legatee under the last will and testament dated May 5, 1964, of her husband, Dr. Ghosh, who had died on December 12, 1965. .....

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..... mere fact that the income from the estate was credited by the executrix to her personal bank account would not amount to distribution of income of the estate to herself as a sole legatee. In that view of the matter, the Income-tax Officer was directed by the Appellate Assistant Commissioner to exclude the amounts representing income from the estate from the individual assessments of the assessee for the assessment years under reference. The Revenue thereafter preferred appeals before the Income-tax Appellate Tribunal. The departmental representative contended before the Tribunal that since the assessee is a sole residuary legatee under the will of her husband and had deposited income arising out of the estate of her husband in her person .....

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..... for the assessment of the income-tax of the assessee. Learned counsel has contended that it will be hyper-technical to contend that the estate not having been fully administered, the distribution made by the executrix to the sole legatee cannot be taken into account. He has contended that, when in fact, the income has been distributed, the assessee must account for such income received by her as sole residuary legatee and she must be held to be liable for income-tax for such amount. Mr. Bhattacharya, learned counsel appearing for the assessee, has, however, contended that the law is well settled that until the estate is fully administered, the income from the estate of the deceased cannot be distributed to the residuary legatee. He has co .....

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