TaxTMI 
TaxTMI 
1981 (12) TMI 72
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....of the Wealth-tax Act was not served on all the legal heirs of Late Shri K.D. Suri. 6. That the learned WTO failed to apply his mind to the facts of the case and did not pass a speaking order. 7. Even on merits the assessment has been pitched at a very high figure under section 16(5) without any basis or jurisdiction. 8. That the appellant craves leave to amend or file any ground of appeal(s) either before or during the course of hearing which may be necessary." 2. At the outset, we will like to place it on record that the assessments for the assessment years 1957-58 to 1971-72 have been made on the same day as is claimed by the parties, more so, the impugned order of the AAC is also a common consolidated one in respect of the assessment years 1957-58 to 1971-72 but the assessee has preferred appeals only for the two assessment years, viz., the assessment years 1957-58 and 1958-59. The assessments have been framed as, "Dr. S.D. Suri, Legal heir of Late Dr. N.D. Suri, N-8, Defence Colony, New Delhi", as per the title of appeals in the order of the AAC, while as per assessment order, the assessments have been framed as, "Shri S.D. Suri, S/M and on behalf of Shri Narain Da....
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....of the impugned order of the AAC. 7. We have heard the learned counsel for the assessee as also the learned departmental representative at length. We have also perused very carefully the assessment orders for the assessment years 1957-58 and 1958-59 as also the impugned order of the AAC, which is a common consolidated one in respect of the assessment years 1957-58 to 1971-72. We have also given our due and careful consideration to the paper book placed on our file in two parts, for and on behalf of the assessee. 8. It is an admitted fact and a common ground that one of the legal heirs of the deceased, i.e., son of the deceased, Shri S.D. Suri, has been taking part in the assessment proceedings at various stages before the WTO. The deceased had left four legal heirs (sons) and a widow of predeceased son and, as has been claimed by the assessee, the said widow remarried in 1956. The deceased Dr. N.D. Suri died on14-1-1972and he died testate and the Will of the deceased Dr. N.D. Suri is stated to have been challenged by the sons of Shri V.D. Suri (another deceased son) who died in November 1974 and the proceedings are pending in the Delhi High Court. 9. It is also an admitted....
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....ing heard the learned authorised representative of the parties at length as also having benefit of going through the case law since relied upon before us by the parties, viz., First Addl. ITO v. Suseela Sadanandan [1965] 57 ITR 168 (SC), Jai Prakash Singh v. CIT [1978] 111 ITR 507 (Gauhati), I. M. Thapar v. CIT [1979] 116 ITR 797 (Cal.), CIT v. Anand Prasad [1981] 128 ITR 388 (Delhi), CIT v. Sumantbhai C. Munshaw (Decd.) [1981] 128 ITR 142 (Guj.), CIT v. Roshan Lal [1981] 23 CTR (Delhi) 82 and H.H. Maharani Vijaykunverba Saheba v. CIT [1981] 25 CTR (Guj.) 300, are of the opinion that the facts of the cases in issue in the present two appeals before us are distinguishable with the facts of the case as were in the cases mentioned as above and at least no authority helps the revenue. Since in those cases, the point at issue was as to whether all the legal heirs of a deceased should be served or else some of the legal heirs or one of the legal heirs could represent the estate of the deceased and so on, and so forth, whereas in the present case the pertinent question is that in the face of the deceased having died testate, i.e., having made a Will and having appointed as executor for ad....
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....he estate according to their several interests. (6) In computing the net wealth on any valuation date under this section, any assets of the estate distributed to, 'or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legatee on any valuation date, be included in the net wealth of such specific legatee on that valuation date. Explanation : In this section, 'executor' includes an administrator or other person administering the estate of a deceased person." 16. Admittedly, the returns in the case of the deceased assessee were filed after section 19A was brought in the statute book and is applicable. 17. Since the deceased died testate and according to his Will specific person was appointed as an executor for administering the estate of the deceased, the assessments could be framed in accordance with law, viz., section 19A as it stood at the relevant time and as it is reproduced above. 18. Admittedly, the assessment have not been framed on the executor insofar as wealth-tax assessments are concerned while the estate duty assessment has b....
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....o exemption so as to warrant an inference that the appellant waived such right by addressing the letter dated25th June, 1970. We, accordingly, reject the plea of waiver raised on behalf of the State Government." 23. In view of the above facts, there being no waiver and there being no estoppel in law vis-a-vis taxing statute and the assessments having not been made in accordance with law, the assessment, as already stated, stands annulled. Since the tax has to be imposed and recovered in accordance with due process of law and in the circumstances of the assessee's cases in appeal before us, the legal heirs much less one of them, could not be subjected to wealth-tax in the face of there being an executor of the deceased to administer the estate. 24. In the case of D.R. Dhanwatey v. CIT [1956] 29 ITR 257 (Nag.), it has been held that the knowledge on the part of one ITO is knowledge of the entire department and under the circumstances and on the facts of the assessee's case, the estate duty assessment was framed on the executor of the Will of the deceased in the year 1976 while wealth-tax assessments have been framed on the legal heirs in the year 1979 and the assessing officer ....