Estate income after death assessable under section 168 in the hands of the person administering the undivided estate.

Income accruing to a deceased person's undivided estate after death was held assessable as a single estate under section 168 in the hands of the person actually administering it. The provision was treated as covering not only an executor but also an administrator or any other person administering the estate, so formal letters of administration were not necessary where one heir managed the estate with the consent of the others. The representative-assessment scheme in sections 160 to 164 was distinct, and section 26 did not apply once section 168 governed the estate. Separate inclusion of fractional shares in the individual assessments of the heirs was therefore not justified.

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Issues: Whether the income accruing to the estate of a deceased person after death was assessable under section 168 of the Income-tax Act, 1961 in the hands of the person actually administering the estate, or whether each heir was liable to be separately assessed on a fractional share.

Analysis: Section 168 applies to the income of the estate of a deceased person and expressly includes not only an executor but also an administrator or any other person administering the estate. The deceased died intestate, the estate remained undivided, and one heir was in fact administering it with the consent of the others. That factual administration was sufficient to bring the case within the Explanation to section 168, even though no formal letters of administration had been granted. The assessment scheme for representative assessees under sections 160 to 164 was distinct, and section 26 had no application once the estate was assessable as a single estate under section 168.

Conclusion: The income of the deceased's estate was assessable under section 168 in the hands of the person administering the estate, and the inclusion of one-sixth shares in the individual assessments of the heirs was not justified.

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