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TMI Blog2008 (2) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... s Swati Soparkar for the assessee. JUDGMENT The judgment of the court was delivered by D.A.MEHTA J. - 1 The Income Tax Appellate Tribunal, Ahmedabad Bench 'B' has referred the following three questions under section 256(1) of the Income Tax Act, 1961 (the Act) at the instance of the Commissioner of Income Tax ("the CIT"), Bhopal (M.P.) "(1) Whether, on the facts and in the circumstances of the case, the assessee being the wife and sole surviving successor and legal heir has to be assessed in respect of the income arising to her from the properties of her late husband Shri Anandrao Puar as per the provisions of section 159 or as per the provisions of section 168 of the Act. (2) Whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inclined to adopt. 3. The dispute between the parties for the years under reference is as to whether income arising from properties left behind by late husband of the assessee is to be assessed in hands of the assessee in her individual capacity, as claimed by the Revenue; or in hands of the assessee as an executor of the estate of the deceased, as claimed by the assessee. Deceased Anandrao Puar expired on 25.04.1980 without executing will. He was survived by the assessee, widow of the deceased, as his only legal heir. 4. The stand of Revenue was that the income arising from the estate of the deceased had to be taxed in hands of the assessee as an individual considering that deceased had died intestate and the assessee was the only legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons that follow hereinafter. 6. Admittedly, between the same parties, viz. CIT, Bhopal and the assessee (Asst. CWT v. Mrinalini Devi Puar [2006] 286 ITR 607 (MP)) the matter had been carried before the High Court of Madhya Pradesh, Indore Bench and the said High Court has after relying on the Apex Court decision in case of Navnitlal Sakarlal (1992)193 ITR 16 come to the conclusion that the assessee as an individual can be charged to Wealth tax only after the estate has been fully administered and the residue becomes available to the individual. Mr. Naik vehemently contended that the said decision rendered by High Court of Madhya Pradesh requires to be distinguished as the said judgment is either sub silentio or is contrary to law and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not be taken. 9. There is no dispute with general propositions laid down in the decisions cited on behalf of the applicant-revenue but the crux of the matter is that this is a case where between the same parties, for the very same assessment year, one High Court has held that the properties, of which the estate of the deceased is comprised of, do not form part of taxable wealth of the assessee individual. In the circumstances, there can be no question of holding that income from such properties is taxable in hands of the assessee individual. Admittedly the decision rendered by High Court of Madhya Pradesh has been accepted by the revenue and this fact was admitted by Mr. Naik. The applicant herein, CIT, Bhopal is bound by the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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