TMI Blog1971 (9) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. The reference related to the assessment made on the assessee for the year 1962-63 for which the accounting period was the year ending March 31,1962. The assessee carried on business as sole selling agent of M/s. Mohanlal Hargovindas, Jabalpur. The assessee succeeded to this business on the death of her husband on or about February 17, 1960. It would appear that M/s. Mohanlal Hargovindas had recovered a certain amount towards that M/s. Mohanlal Hargovindas had recovered a certain amount towards that M/s. Mohanlal Hargovinds had recovered a certain amount towards sales tax from the assessee's husband relating to the period January 26,1950, to March 31,1951. In an appeal filed by the said firm, however, the Assistant Commissioner of Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of loss, expenditure or trading liability incurred by the assessee, and subsequently during any previous year the assessee has obtained, whether in cash or in any other manner whatsoever, any amount in respect of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation thereof, the amount obtained by him or the value of benefit accruing to him, shall be deemed to be profits and gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not." As pointed out by the High Court, under the general law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted, liable to tax under section 41(1) in respect of the amount remitted and received by the successor or the legal representative. The only provision which relates to the liability of the legal representative is section 159 of the Act. Sub-section (1) thereof provides that where a person dies his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died in the like manner and to the same extent as the deceased. The corresponding provision in the Income-tax Act, 1922, was section 24B. In Commissioner of Income-tax v. Amarchand N. Shroff it was laid down by this court that section 24B did not authorise the levy of tax on receipts by the legal representative of a deceased person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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