Income Tax Reference v. Late D.a. Thakersey

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 669of 1987 The Commissioner of Income Tax ... Applicant. vs. Late D.A. Thakersey ..... Respondent Mr.Ashok Kotangale for Applicant. CORAM: V. C. DAGA AND A. S. AGUIAR JJ.Date:29[th] June, 2005. P. C.: 1. Heard learned counsel for the applicant. None for the Respondent, inspite of service. In this application of the Revenue under section256(1) of the Income-tax Act, the following question was referred forthe opinion of this Court: “Whether on the facts and in the circumstances of thecase, the Tribunal was right in law in holding that theprovisions of section 168 of the I. T. Act were notapplicable in tis case and in consequently cancelling the 2 P assessment made in the hands of the estate through theexecutor?” 2. Learned counsel appearing for the applicant submits that thequestion referred to this court for opinion is squarely covered by thejudgment of this court delivered in the case of C.I.T. vs. Usha D.Shah [1981] 127 ITR 850 Bom., wherein it has been ruled that theeffect of section 168 is that it is obligatory to tax the estate of thedeceased person in the hands of executor. The provision does notseem to leave any discretion to the Income-tax Authorities in thisbehalf. In this view of the matter the question referred to is answeredin favour of the Revenue and against the Assessee. (V. C. DAGA J. ) -x- (A. S. AGUIAR J.)