Executors after estate administration may be assessed as trustees, not executors, where beneficiaries' interests are definite.

Executors cease to be assessable as executors under the Wealth-tax Act once the estate has been substantially administered and the remaining property is held for known beneficiaries with definite shares. Physical non-distribution of the last asset does not, by itself, preserve executorial character where debts, liabilities, taxes and other charges have been discharged and the residue has been ascertained. On the facts, the estate had been administered, other assets were distributed, liabilities were paid and the remaining land was held only for the beneficiaries. Assessment therefore had to be made under section 21 as property held in trust, not under section 19A(5) as executors.

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Issues: Whether, on the relevant valuation dates, the executors under the will continued to be assessable as executors in respect of the undistributed land under section 19A(5) of the Wealth-tax Act, or whether they had ceased to act as executors and were holding the property as trustees for the beneficiaries so that assessment had to be made under section 21 of the Wealth-tax Act.

Analysis: The determining question was the legal character in which the estate was being held on the valuation dates. An executor may cease to act as executor and assume the position of trustee once the estate has been substantially or fully administered, and assent to the legatees may be express or implied. The fact that some property remains physically undistributed does not by itself show that the executorial character continues, especially where the debts, liabilities, taxes and other charges have been discharged, the residue is ascertained, and the beneficiaries' shares in the remaining property are definite. The property in the hands of executors administering an estate does not necessarily "belong" to them in the absolute sense for wealth-tax purposes. On the facts, the estate had been administered, the other assets had been distributed, liabilities had been paid, and the remaining land was held only for the beneficiaries whose interests were known and certain.

Conclusion: The executors were holding the land as trustees for the beneficiaries and not as executors liable under section 19A(5) of the Wealth-tax Act; assessment was required to be made under section 21 of the Wealth-tax Act, in favour of the assessee.

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