https://www.taxtmi.com/caselaws?id=191818 Section 26(2) of the Income-tax Act was construed to cover succession where a business is taken over and continued by another person without break in its character, management, or continuity. The expression "succeeded in such capacity by another person" was read according to the substance of the business arrangement, so succession was not limited to transfer inter vivos and could arise by operation of law. On that basis, the heir who continued the deceased predecessor's business was liable to assessment on the predecessor's business income for the relevant year, and the predecessor's death before expiry of the return period did not prevent assessment once the heir had filed a return. en-us Sat, 22 Apr 1933 00:00:00 +0530 Tue, 25 Apr 2017 15:26:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191818 Section 26(2) of the Income-tax Act was construed to cover succession where a business is taken over and continued by another person without break in its character, management, or continuity. The expression "succeeded in such capacity by another person" was read according to the substance of the business arrangement, so succession was not limited to transfer inter vivos and could arise by operation of law. On that basis, the heir who continued the deceased predecessor's business was liable to assessment on the predecessor's business income for the relevant year, and the predecessor's death before expiry of the return period did not prevent assessment once the heir had filed a return. Case-Laws Income Tax Sat, 22 Apr 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191818