TaxTMI 
TaxTMI 
2026 (3) TMI 1564
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...., for the assessment year 2024-25. 2. In this appeal, the assessee has raised the following grounds: - "1.1 The learned Commissioner of Income-Tax (Appeal) both in law and on the facts and in the circumstances of the case, ought to have appreciated that since dividend income has arisen only after the date of demise of Mr. Pallonji Shapoorji Mistry(PSM') the said income is offered to tax in hands of Appellant and accordingly, credit for TDS deducted in hands of PSM ought to have been allowed to Appellant viz. Estate of PSM. 1.2 The learned Commissioner of Income-tax (Appeal) erred, both in law and on the facts and in the circumstances of the case, that declaration needs to be filed by the legal heir under Rule 37BA(2....
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....der section 143(1) of the Act, determining the total income at INR 78,07,290 and tax payable of INR 4,06,530 without granting the TDS credit of INR 3,56,931 deducted in the hands of the late Mr. Pallonji Shapoorji Mistry. 4. In its appeal before the learned Addl./Joint CIT(A) against the intimation issued under section 143(1) of the Act, the assessee submitted that the TDS of INR 3,56,931 pertains to the dividend income accrued during the financial year 2023-24 of the assets of the deceased, which have been duly offered to tax in the hands of the assessee Estate as required under section 168 of the Act. The assessee further submitted that no return has been filed in the name of the deceased for the year under consideration, and that the ....
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....ble on record, we find that in the present case, it is undisputed that when an individual dies leaving behind a valid will, an Estate is deemed to be formed under section 168 of the Act, and the income of this Estate becomes chargeable to tax in the hands of the Executor(s), who are obliged to file separate return of income for the Estate in respect of the income accruing or arising from the Estate's assets after the death of the individual. 7. In the present case, as per the assessee, the assessee Estate was formed on 29/06/2022 after the demise of late Mr. Pallonji Shapoorji Mistry on 28/06/2022. Accordingly, no return was filed in the name of the deceased in the year under consideration. Further, the dividend income accrued during the....
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....sets of the deceased pertains is not available on record. We are of the considered view that such information is relevant, as if the income from the deceased's assets pertains to the post-death period, it is taxable in the hands of the Estate. Otherwise, it is required to be declared in the hands of the legal heir. Therefore, we are of the considered view that this aspect requires verification. Accordingly, we endorse the findings of the learned CIT(A) regarding the requirement for factual verification of the aforenoted aspect, without agreeing with its directions to the AO, which are not in conformity with the provisions of section 251 of the Act. As regards the observations in paragraphs 6.5 and 6.6 of the impugned order, the same appear ....