TMI Blog2015 (3) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 93,659/-. The second return was filed for the period 28.02.1981 to 27.10.1981, i.e. from the date of death till Diwali and this return was for ₹ 1,98,125/-. The A.O. opined that two returns cannot be filed. But the assessee has filed two returns separately, so, the A.O. disallowed the same. Finally, the A.O. has clubbed both the returns and passed the assessment order, the same was upheld by the first appellate authority. However, the Tribunal vide its order dated 28.04.1989 (in ITA No. 1540(Alld)/1985) observed that the income which accrued and arose to the deceased during his lifetime would be taxable in his hand. As soon as death took place, the property in question and the source of income in question gets vested in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .I.T. Bombay V. Jamesh Anderson 51 I.T.N. 345, which clearly applied to the case of the assessee ? Sri Shambhoo Chopra, learned counsel for the department has justified the order passed by the A.O. and submits that two separate returns could not be filed. As per Section-159 of the Income Tax Act, the return will have to be filed upto the end of the accounting year in which the deceased died. Therefore, a single return clubbing the income of both the periods had to be filed and a single assessment was rightly made by the A.O. For the purpose, he relied on the ratio laid down in the following cases:- (1) C.I.T. Bombay V. Jamesh Anderson 51 I.T.N. 345 ; and (2) C.I.T. V. Amarchand Shroff, 48 I.T.R. 59. On the other hand, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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