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1950 (12) TMI 3 - SC - Income TaxWhether the executors are entitled to get the benefit of the exemption from income-tax in respect of the profits earned only for the nine days between the 1st of April and the 9th of April, 1942, or between the 1st of April, 1942, and 1st of January, 1943, under Section 25(4) of the Indian Income-tax ? Held that:- It seems clear that if the testator had transferred the business to a trustee, although the trustees will not be the beneficial owners, in law there will be a succession of the business to another person within the meaning of Section 25(4) of the Indian Income-tax Act. If in such a case that result follows there appears no reason why when the legal estate is transferred by operation of law to an executor there should not be considered a succession to the estate by another person within the meaning of the same Section 25(4). The words "in such capacity" in that clause further make the position clear. It makes the distinction of legal and beneficial ownership irrelevant. The contention that the business was to be carried on by the executors as such, as a going concern or that it was being carried on for the benefit or loss of the testator's estate is not relevant for the present discussion. The only relevant question under Section 25(4) of the Indian Income-tax Act is whether in respect of the business there is a succession to another person. This is a provision to give relief and the scope of the relief must be governed by the words used in the Act. In our opinion the answer to this question, on the facts of the present case, must be in the affirmative and the date of such succession must be considered to be the death of the testator, which was on the 9th of April, 1942. The result is that the appeal fails
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