| Case ID |
42cf3ca0-84c3-41f2-8a77-64f48ce242cc |
| Body |
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| Case Number |
IT REF. No. 171 OF 1970 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the widow, as an assessee, could not be taxed on the undistributed estate of her deceased husband, as her rights in the estate were not recognized during the relevant assessment years. The income from the estate was to be taxed in the hands of the administrator, who was the mother-in-law of the widow. The court found that the income of the estate had to be charged to tax in the hands of the executor as per the provisions of section 168 of the Income-tax Act, 1961. The tribunal's view that the widow did not receive any income either personally or as an administrator was upheld, leading to the conclusion that the estate's income could not be taxed in her hands. |
| Summary |
In the case of Commissioner of Income Tax v. Mrs. Usha D. Shah, the Bombay High Court addressed the taxation of income from the undistributed estate of a deceased coparcener in a Hindu Undivided Family (HUF). The central issue revolved around whether the widow of the deceased could be taxed on her share of the estate when her rights were not recognized during the relevant assessment years (1961-62 to 1963-64). The widow filed income tax returns showing her income but contested the inclusion of her share of the HUF's income, arguing that she had not received any income from the estate, which was being administered by her mother-in-law. The Assessing Officer had added her share of the HUF's income based on her mother-in-law’s returns. The Appellate Authority and the Tribunal both ruled in favor of the widow, stating that since she had no recognized rights to the income during the relevant periods and the estate was administered by another, she could not be taxed. The court affirmed that income from a deceased's estate is chargeable to tax only in the hands of the executor or administrator as per Section 168 of the Income-tax Act, 1961, thus ensuring that the widow was not liable for tax on the undistributed estate. This case emphasizes the legal principles surrounding estate administration and the tax obligations of heirs in the context of HUFs. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
M.N. Chandurkar,
S.K. Desai
|
| Lawyers |
R.J. Joshi,
V.J. Joshi,
Miss S.G. Shah,
S.E. Dastur,
S. Ganesh
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Mrs. Usha D. Shah
|
| Citations |
1981 SLD 1553,
(1981) 127 ITR 850
|
| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
|
| Sections |
168
|