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1965 (11) TMI 37 - SC - Income TaxWhether by enacting section 18 of the Act, Parliament has not rendered the estate of a person liable to expenditure-tax, if such person had died before the date on which the Act was brought into force? Held that:- A person who has rendered himself liable to pay tax on the expenditure incurred by him in the previous year may, not being aware of the proposal to enact a statute like the Expenditure-tax Act, part with his estate. But on that account he cannot set up a defence against the levy of the tax that he has parted with the estate. Nor can the legal representative of a deceased person set up a plea that because the estate is distributed, he should not be rendered liable to pay the expenditure-tax which has been imposed by the statute. Thus unable therefore to agree with the High Court that, by enacting section 18 of the Act, Parliament has not rendered the estate of a person liable to expenditure-tax, if such person had died before the date on which the Act was brought into force. Appeal allowed.
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