Law: Income Tax Act, 1961

Section: 66(1)

Section 143 of the Income-tax Act, 1961 [Corresponding to section 23 of the Indian Income-tax Act, 1922], read with section 111 of the Indian Succession Act - Assessment - General - Assessment years 1951-52 to 1953-54 and 1956-57 - Will of deceased provided that after his life time two minor sons of his divided son and male children that might be born thereafter would take and enjoy in equal shares and with absolute rights all assets and liabilities in respect of his immovable and movable properties - Deceased had two grandsons while he was alive and two grandsons were born after his death - According to revenue, only two minor grandsons who were alive at time of deceased's death were to be assessed on deceased's estate, and two subsequent born grandsons were not entitled to any share in that estate - Whether bequest made by deceased was in favour of a class of heirs, and there being no provision in will, express or implied, indicating period of distribution later than death of testator and there being no deferring of possession beyond death, date of ascertainment of class of heir, must in view of section 111 of Indian Succession Act, be taken to be date of testator's death - Held, yes - Whether therefore, assessments made on two minor grandchildren on a half share each of income of deceased's estate were valid - Held, yes FACTS The deceased executed a will by which he made bequests of the properties got by him under the partition of family properties. On the date of the will, he had two grandsons. After the death of the deceased another two grandsons were born. The income from the estate of the deceased came in for income-tax assessment for the year 1951-52. The assessment was made by the ITO on the footing that the two grandsons of deceased, who alone were in existence on the date of his death were each entitled to a moiety of the estate, and that the two subsequent born grand-sons were not entitled to any share in the deceased's estate. The assessments for the subsequent years 1952-53, 1953-54 and 1956-57 were also similarly made. The assessee's appeal to the AAC and a further appeal to the Tribunal proved futile. On reference : HELD There was no doubt, that…

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