Law:

Section:

Section 168 of the Income-tax Act, 1961 - Executors - Assessment year 1970-71 - Whether sub-section (3) of section 168 does not provide for making separate assessments on executors on respective shares of beneficiaries of estate in total income of estate in each completed year or part thereof prior to complete distribution of that estate among beneficiaries according to their respective shares - Held, yes FACTS On account of difference of opinion between the Judges of the Division Bench, the question came up for consideration before the Chief Justice was whether section 168(3) provides for making of a single assessment on the total income of each previous year or part of a previous year on the executors, or the making of separate assessments on the executors on the total income of each previous year or part of previous year according to the several interests of the beneficiaries out of the total income of each previous year or part of previous year. HELD PER CHANDRASHEKHAR, CJ. The purpose of sub-section (3) of section 168, is to provide - (i) that if a testator dies in the middle of a previous year, there should be two separate assessments on the executors - one from the commencement of that previous year up to the date of his death and another separate assessment for the remaining part of that previous year; and (ii) that if the complete distribution of the estate among the beneficiaries is completed in the middle of the previous year, there should be two separate assessments in respect of that year - one from the date of commencement of the previous year up to the date of such complete distribution of the estate and another for the remaining part of that previous year. But for the provisions of sub-section (3) of section 168, there could be only one assessment under section 159 on his executors for the whole of the previous year in which the testator died, as if he had not died, and it would have been doubtful if two assessments could be made on the executors, one in respect of the portion of the previous year prior to the complete distribution of the estate among the beneficiaries and another, in respect of the remaining portion of that previous year. It is…

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