Executor's assent and completion of estate administration determine separate wealth-tax assessment of estate property

The dispute concerned whether, on the valuation date, administration of a deceased's estate had been completed so that the estate value was assessable separately in the executor's hands under section 19A of the Wealth-tax Act, 1957. The court noted that an executor's assent to vesting in legatees may be express or implied and can be inferred from conduct once administration has reached a stage of ripeness. It also observed that the will indicated an intention that the properties be enjoyed as joint family properties, but the Tribunal had not examined the crucial factual question whether the executor had assented during the period between death and the valuation date. The reference was returned unanswered and remitted to the Tribunal for reconsideration.

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Issues: Whether the administration of the deceased's estate had been completed on the relevant valuation date so that the estate value had to be assessed separately in the hands of the executor under section 19A of the Wealth-tax Act, 1957; and whether the executor had expressly or impliedly assented to vesting of the properties in the legatees during the relevant period.

Analysis: The dispute turned on whether the executor had ceased to act in that capacity and had assented to the legacy, since assent may be express or implied and can be inferred from conduct when administration has reached a point of ripeness. The court also noted that the testator's intention under the will was that the properties should be enjoyed as joint family properties, but the crucial factual question whether the executor had given assent during the period between the testator's death and the valuation date had not been examined by the Tribunal.

Outcome: The reference was returned unanswered and the matter was sent back to the Tribunal for reconsideration of the question whether there was express or implied assent by the executor.

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