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2015 (3) TMI 539 - HC - Income TaxIncome accrued after the death of the deceased - I.T.A.T. restoring the matter to the file of the AO with the direction that he will analysis each item of income with a view to ascertain as to which part of it accrued and arose to the deceased during his life time and as to what is the income which accrued or arose after the death of the deceased not to him but to the executor and to bring to tax separately the two total incomes (1) u/s 159 and (2) u/s 168 - Held that:- From the record, it appears that the Tribunal has restored the matter back to the A.O. and, by now, the A.O. must have passed a fresh order as per the direction of the Tribunal. Further, the tax amount involved is a meager one in the instant case. On merit, we are of the view that the income which accrued after the death of the deceased belongs to the executor of the will of the deceased and in that capacity an assessment has to be made. The income which was earned by the deceased during his lifetime will have to be assessed separately, as deceased cannot earn any income after his death, nor such income could be assessed in his hands. In other words, the income which never belonged to the deceased and which never accrued to him could not be brought in his hands. It may be mentioned that Section-176 (IA) was inserted whereby the income earned by the deceased but received after his death, subsequent to the end of the previous year in which he died but also made assessable through his legal representative by the fiction created in Section-176(3A) of the Act. As soon as death takes place, the property/income in question is vested in the legal heirs. When it is so then we find no reason to interfere with the impugned order passed by the Tribunal. The same is hereby sustained alongwith the reasons mentioned herein above. - Decided against revenue.
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