Intestate estate not covered by executor assessment under wealth-tax rules; inherited wealth remains includible in heirs' taxable wealth.

Section 19A of the Wealth-tax Act, 1957 applies to the net wealth of a deceased person only where the estate is under administration by an executor or equivalent administrator, in the context of a testate estate. It does not extend to property devolving on heirs on intestate succession, because such wealth vests in the heirs and is not assessable as an executor's estate. Authorities concerning testate estates or letters of administration were therefore inapplicable to an intestate estate. On that reasoning, the deceased husband's wealth could not be excluded from the assessee-wife's taxable wealth on the basis of separate estate assessment.

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Issues: Whether the wealth of a deceased husband who died intestate could be excluded from the assessee-wife's taxable wealth under section 19A of the Wealth-tax Act, 1957, on the footing that the estate was separately assessable in the hands of an executor or administrator.

Analysis: Section 19A of the Wealth-tax Act, 1957, in language corresponding to section 168 of the Income-tax Act, 1961, applies to the net wealth of a deceased person in the hands of the executor or executors, including an administrator or other person administering the estate. The expression is read in the context of the Indian Succession Act, 1925 and the scheme of the provision, which contemplates administration of a testate estate and continuation of assessment until complete distribution. The provision does not extend to an estate devolving on heirs where the deceased died intestate. In such a case, the estate vests in the heirs and cannot be assessed as the estate of an executor under section 19A. The Court also noted that the authorities relied on by the assessee concerned testate estates or situations involving letters of administration and were not applicable to an intestate succession.

Conclusion: The exclusion claimed by the assessee was not sustainable and the wealth of the deceased husband was includible in the assessee's wealth; the finding was against the assessee and in favour of the Revenue.

Ratio Decidendi: Section 19A of the Wealth-tax Act, 1957, applies only to the administration of a testate estate through an executor or equivalent administrator and does not extend to wealth inherited on intestate succession by heirs.

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