COMMISSIONER OF INCOME TAX Vs. MAHARAJA RANA INDERJEET

JUDGEMENT

(1.) ON an application under s. 256(1) of the IT Act, 1961, the following questions are referred for the opinion of this Court : Question in RA No. 57/Jp/1981

(2.) FOR the asst. yr. 1967-68 returns were filed by Shri Inderjeet Singhji, legal heir of late HH Shri Harish Chandraji. In response to the notice under s. 143(2), the directions are not complied with, then AO has passed the order under s. 144 and he assessed the income at Rs. 54,250. Subsequently it was also brought to the notice of the AO that late HH Shri Harish Chandraji expired on 17th March, 1967, year ending 31st March, 1967, for the asst. yr. 1967-68. Therefore, the income should be taxed in the hands of legal heir of late HH Shri Harish Chandraji and income should not be taxed taking the status of Inderjeet Singh as 'individual'.

(3.) WE perused the material on record. The first order for the asst. yr. 1967-68 was passed by the AO under s. 144 on 24th March, 1972. The perusal of that order shows that though in the assessment order, the status has been shown as 'individual' but against the name of the assessee, in the assessment order, it has been clearly stated that assessee Inderjeet Singhji is the legal heir of late HH Shri Harish Chandraji, Jhalawar, therefore, assessee was not Inderjeet Singh in his 'individual capacity' but he was the legal representative of HH Shri Harish Chandraji, Jhalawar and even the confusion regarding status has been removed by the ITO in his order dt. 17th March, 1979 and in order under s.154. The ITO has clarified that the status of Shri Inderjeet Singhji has been taken as 'individual' while Shri Inderjeet Singhji is legal heir of late HH Shri Harish Chandraji so far income of HH Harish Chandraji uptil 17th March, 1967, is concerned. Therefore, the assessment for the income of HH Shri Harish Chandraji uptil 17th March, 1967 be taken as income taxable in the hands of Shri Inderjeet Singhji, as legal heir of HH Shri Harish Chandraji. Therefore, there is no need to exclude the income while it has been categorically stated that income of late HH Shri Harish Chandraji prior to his death i.e. uptil 17th March, 1967, is taxable in the hands of legal representative of HH Shri Harish Chandraji i.e., Inderjeet Singhji. The Tribunal, therefore, has committed error in excluding the income which was taxable in the hands of late HH Harish Chandraji prior to his death. Now that has been taxed in the hands of Shri Inderjeet Singhji as legal representative of late HH Shri Harish Chandraji.