Statutory substitution in tax assessment cannot validate liability against a later-appointed receiver where the Act provides no authority.

Assessment initiated against executors for income arising during their administration could not be sustained against a subsequently appointed receiver. The High Court's order permitting the receiver to seek substitution in pending proceedings did not override the Income-tax Act, and the Act contained no provision authorising substitution of the receiver in place of the executors in that assessment. The receiver's request for substitution could not create liability by estoppel or cure the absence of statutory authority. The referred question was answered in the negative, in favour of the assessee.

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Issues: Whether the assessment made on the receiver, after substitution for the executors at his own request pursuant to the High Court's order, was sustainable in law for the assessment year 1944-45.

Analysis: The assessment had been initiated against the executors in respect of income accruing during their administration of the estate, and the relevant income had not been received by the receiver. The High Court's order merely permitted the receiver to apply for substitution in pending proceedings; it did not, by itself, authorise a substitution which the Income-tax Act did not permit. There was no provision in the Act enabling a receiver appointed later to be substituted in place of the executors in such an assessment proceeding. The receiver's request for substitution, made pursuant to the High Court's order, could not create liability by estoppel or validate an assessment otherwise unauthorised by statute.

Conclusion: The assessment was not sustainable in law. The answer to the referred question was in the negative, in favour of the assessee.

Ratio Decidendi: Where the Income-tax Act does not authorise substitution of a newly appointed receiver for executors already proceeded against, a substitution made at the receiver's request cannot validate an assessment otherwise lacking statutory sanction.

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