MENABEN Vs. CED

JUDGEMENT

(1.) IN this reference we are concerned with the estate of the deceased, V. M. Parikh. The reference is at the instance of the accountable person under s. 64(1) of the E.D. Act, 1953.

(2.) THE said V. M. Parikh (hereinafter referred to as 'the deceased') died on 9th January, 1961, and the accountable person is the legal heir of the deceased. The deceased was a salaried employee of M/s. Batliboi and Co. (as the name appears in the statement of case but which we are told is a limited company) for over 20 years prior to his death. He was to be paid monthly Rs. 150 or three annas nine pies in a rupee in the net profits of the business, whichever was higher. The deceased expired on 9th January, 1961. The accounting period of M/s. Batliboi and Co. (hereinafter referred to as 'the company') ended on 30th June of every year. Accordingly, the salary payable to him from July 1, 1960, to January 9, 1961, when calculated on the basis of the share of profit came to Rs. 6,75,244. Obviously, the computation or ascertainment of this amount could have taken place only after June, 1961.

(3.) SO far as deduction on account of tax liability was concerned, the contention of the accountable person was fully accepted and necessary direction given in his order by the Appellate Controller.