TMI Blog1967 (2) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ettiah has escheated to the State of Bihar. It is obvious that in case of such escheat there can be no assessment to income-tax. The position will be clarified after the appeal disposed of - - - - - Dated:- 24-2-1967 - G. K. MITTER., J. M. SHELAT. and M. HIDAYATULLAH. JUDGMENT The judgment of the court was delivered by MITTER J.--- This is an appeal from a judgment and answer of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, 1954. For many years past before her death, the estate was under the management of the court of wards and continued under such management even after her death as it was not known whether she had left any heirs. Under section 13 of the Bengal Court of Wards Act, 1879 (IX of 1879) : " Whenever, on the death of any ward, the succession to his property or any part thereof is in dispute, the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the State Government by escheat and the manager, court of wards put forward that claim before the income-tax authorities. There was a further contention raised by the manager that even if the assessment was made on him representing the estate, the income should not be taxed at a maximum rate under section 41(1) of the Income-tax Act, 1922. As the litigation was pending, the Income-tax Officer an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax authorities cannot validly impose a tax upon the Manager, Court of Wards, Bettiah Estate, merely because a title suit has been filed with regard to the heirship of the Bettiah Estate without deciding the question as to whether the claim of the State of Bihar that the property has vested in it by escheat is established or not." On this view, the first question was answered in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tary statement of case, if it thinks necessary. The question as to whether the estate has escheated to the State of Bihar is left open, and the costs of this appeal will abide by the ultimate decision of the High Court. In case it be found that the escheat had taken place, the appellant before us will have to pay the costs of this appeal and if there is no escheat, the Commissioner will have the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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