COMMISSIONER OF INCOME TAX Vs. RANJIT KUMAR MULLICK

JUDGEMENT

(1.) At the instance of the Commissioner of Income-tax, West Bengal-XI, the following question of law has been referred to this court under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1971-72, 1972-73 and 1973-74 :

(2.) The facts are in a narrow compass.

(3.) Under a trust known as " Beharilal Mullick Trust ", there are three beneficiaries, viz., Uma Charan, Sheo Prakash and Naba Kumar. Each of the beneficiaries has one third interest. Uma Charan died on August 5, 1969, leaving his one third beneficial interest, apart from his other personal properties. He left behind his widow and son, Ranjit Kumar. This reference pertains to the wealth-tax assessments of Ranjit Kumar Mullick. It appears that tax liabilities of Uma Charan were outstanding. These liabilities of Uma Charan have to be discharged by Ranjit Kumar to the extent of his share of property which he inherited from his father. The liability so far as Ranjit Kumar was concerned was Rs. 26,855. While filing the returns for the assessment years in question, the assessee, Ranjit Kumar, claimed his share of tax liabilities as a deduction from out of the properties inherited by him. Similar was the case with his mother, Smt. Durgamani Mullick. The Wealth-tax Officer rejected the claim of the son and the mother on the ground that these were not tax liabilities in their hands and as such could not be allowed by virtue of Section 2(m)(iii)(b) of the Act. The Appellate Assistant Commissioner upheld the orders of the Wealth-tax Officer in both the cases.