Law: Wealth Tax Act, 1957

Section: 19

[Indian Wealth Tax Act, 1957]......Section 19---Deceased Individual--Liability of executors- Whether executors can be made liable to wealth tax in respect of the net wealth left by deceased person beyond the financial year in which such person dies-Held no; There is no provision in the Wealth Tax Act for charging and assessing wealth tax in respect of the net wealth of a deceased individual beyond the financial year in which such person dies. His executors, administrators and legal representatives are by legal fiction made liable to pay wealth tax for that particular financial year in the next assessment year. There is no further liability to pay wealth tax attached to the estate left by a deceased individual and continuing in the hands of the executors, administrators or other legal representatives. Cases referred to: Bengal Immunity Co. Ltd. v. State of Bihar (1955) 6 S.T.C. 446; (1955) 2 S.C.R. 603, Calcutta Discount Co. Ltd. V. Income Tax Officer (1961) 41 I.T.R. 191; (1961) 2 S.C.R. 241; A.I.R. 1961 S.C. 372. Commissioner of Income Tax v. Amarchand N. Shroff (1963) 48 I.T.R. (S.C.) 59. Commissioner of Income Tax v. James Anderson (1964) 51 I.T.R. 345 (S.C.). Dhunjishaw Pestonji Ratanji Cassad V, Commissioner of Income Tax (1962) 46 I.T.R. 1023. Elis C. Reid v. Commissioner of Income Tax (1930) 5 I.T.C. 100. Prashar (S.C.) v. Vasantsen Dwarkadas (1956) 29 I.T.R. 457. JUDGMENT [The judgment of the court was delivered by K. K. DESAI J.]. In this petition under article 226 of the Constitution, the petitioners who are the joint executors appointed by the last will and testament dated April 8, 1959, of one Sodradevi N. Daga. have challenged the validity of the wealth tax assessment order dated March 25, 1963, the notice of demand also dated March 25, 1963, and the revisional order passed by the Commissioner of Wealth Tax dated September 13, 1963. The main contention of the petitioners is that there is no provision in the Wealth Tax Act, 1957 (27 of 1957), entitling the revenue to charge, assess and recover Wealth tax in respect of the wealth left by a deceased person from after the financial year next to the financial year in which such person dies. The relevant…

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