Proper estate representation and professional income classification under income tax law determined notice requirements and the correct head of income.

Proper estate representation is required in assessment proceedings for a deceased assessee, so notice to all legal representatives is necessary where the estate is not otherwise fully represented; a return filed by one representative does not dispense with notice to the others. Professional receipts earned by a Government Pleader were treated as income from the practice of the profession, not as residuary income under the head of other sources. The reference was answered for the assessee on both issues.

---

---

Issues: (i) Whether service of notice under section 24B(2) of the Indian Income-tax Act, 1922, on all legal representatives of a deceased assessee is necessary before assessment can be made when only one legal representative has filed a return; (ii) Whether the income earned by a Government Pleader from professional fees was assessable as income from other sources under section 12 of the Indian Income-tax Act, 1922.

Issue (i): Whether service of notice under section 24B(2) of the Indian Income-tax Act, 1922, on all legal representatives of a deceased assessee is necessary before assessment can be made when only one legal representative has filed a return.

Analysis: Section 24B requires proper representation of the estate of a deceased person in assessment proceedings. Where there are several legal representatives, the expression "legal representative" is to be understood collectively so that the estate is fully represented. A voluntary return filed by one legal representative does not, by itself, dispense with the statutory requirement of notice to the others, unless the estate is otherwise properly represented by all of them. On the facts, no such complete representation existed, and service of notices on the remaining legal representatives was indispensable.

Conclusion: The notice requirement under section 24B(2) was necessary in the circumstances, and the assessment could not validly proceed without service of notices on the other legal representatives.

Issue (ii): Whether the income earned by a Government Pleader from professional fees was assessable as income from other sources under section 12 of the Indian Income-tax Act, 1922.

Analysis: The receipts represented remuneration for services rendered in the practice of the assessee's profession. Such receipts are characteristically professional income and not residuary income falling under the head "other sources". The head of income must be determined by the real source and nature of the earning.

Conclusion: The income was not assessable as income from other sources.

Final Conclusion: The reference was answered in favour of the assessee on both questions, and the Revenue was directed to bear the costs.

Ratio Decidendi: In assessment proceedings relating to a deceased person, all legal representatives must be properly brought before the tax authority where complete estate representation is required, and professional receipts are taxable under the appropriate head corresponding to their true source, not as residuary income.

---