Estate taxation and TDS credit: post-death income belongs to the estate, but remand power is limited by statute.

Income arising after an individual's death from estate assets is taxable in the hands of the estate through the executor, and TDS credit follows the same tax incidence. On the facts, the dividend income was not clearly shown to relate entirely to the post-death period, so factual verification remained necessary before granting credit. The first appellate authority, however, had no power under section 251 to remand the matter to the Assessing Officer for fresh verification except in circumstances covered by section 144. The order restoring the issue was therefore unsustainable, but the assessee's claim to TDS credit was kept open for determination on proper verification.

---

---

Issues: Whether the TDS credit on dividend income arising from the deceased's assets could be granted to the estate, and whether the first appellate authority could restore the matter to the Assessing Officer for verification.

Analysis: The estate was formed after the death of the individual and the return was filed in the capacity of an Association of Persons under section 168 of the Income-tax Act, 1961. Income accruing from the assets of the deceased after death is taxable in the hands of the estate through the executor, and corresponding TDS credit belongs to the person in whose hands such income is taxable. The record, however, did not clearly show whether the dividend income related wholly to the post-death period or partly to the pre-death period, making factual verification necessary. At the same time, the appellate authority's power under section 251 does not include remanding the matter to the Assessing Officer for fresh verification, except in cases covered by section 144.

Conclusion: The estate is entitled to TDS credit if the income is found to relate to the post-death period, and the matter must be verified by the Assessing Officer in accordance with law. The order restoring the issue to the Assessing Officer was not sustainable, but the need for verification was upheld, resulting in relief in part to the assessee.

Final Conclusion: The appeal succeeded to the extent that the assessee's claim for TDS credit remained open for allowance on verification, and the appellate order was modified in part while preserving the substantive entitlement issue.

Ratio Decidendi: Income arising after the death of an individual from estate assets is taxable in the hands of the estate, with TDS credit available accordingly, and the first appellate authority cannot remand the matter to the Assessing Officer except as permitted by the statute.

---