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1963 (12) TMI 3 - SC - Income TaxWhether the Act contains machinery for assessing dividends deemed to have been distributed by virtue of an order under section 23A in respect of the shares held by a shareholder, when before the date on which the fiction of distribution becomes effective--viz., the date of the relevant general meeting of the company--the registered shareholder has died and his representatives have not been substituted in the register of the company.? Held that:- The Legislature not having made any provision generally for assessment of income receivable by the estate of the deceased person, the expression " any tax which would have been payable by him under this Act if he had not died " cannot be deemed to have supplied the machinery for taxation of income received by a legal representative to the estate after the expiry of the year in the course of which such person died. The charge to income-tax has therefore to be in accordance with, and subject to the provisions of the Act, and the Legislature has not provided that the income received by a legal representative which would, but for the death of the deceased, have been received by such deceased person, is to be regarded for the purpose of assessment as the personal income of the legal representative. To assess tax on such receipts on the footing that it is the personal income of the legal representative is to charge tax not in accordance with the provisions of the Act. We, therefore, agree with the High Court, though for somewhat different reasons. Appeal dismissed.
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