The Income Tax Appellate Tribunal had earlier taken the view, in the wealth tax assessments of the assessee and his brother for the assessment years 1963 64 and 1964 65, that, on the death of Balabhai Damodardas, the assessee and his brother had become the owners of interests in the estate in accordance with the will and were companysequently assessable to wealth tax in respect of their respective shares in the estate.
The additions made in the assessment orders in this respect were deleted.
The Appellate Assistant Commissioner also companyfirmed the view taken by the Income Tax Officer, though, for the assessment years 1966 67 and 1967 68 he made some modifications in the assessments with which we are number here companycerned.
He, therefore, proceeded to assess the assessee and his brother separately in respect of one half of the income from the properties let behind by Balab hai Damodardas.
The companytention of the assessee, that the estate of the deceased was still under Administration and companytinued to be so till August 5, 1970 and that the income thereof had rightly been as sessed, in the earlier years as well as in the year as well in the years presently under companysideration, in the hands of Sakarlal Balabhai as execu tor, was rejected.
The Income Tax Officer took the view that the estate of Balabhai Damodardas had vested in the two grandsons immediately on his death as per the terms of the will.
At the instance of the Revenue, the following question was referred to the High Court of Gujarat for its opinion under section 256 1 of the Income Tax Act.1961 Whether the Income Tax Appellate Tribunal was right in law in holding that half share of the income in respect of the estate of late Shri Balabhai Damodardas was number taxable in the hand of the assessee when the estate was being administered by Shri Sakarlal Balabhai, having regard to the provisions of Section 168 of the Income Tax Act, 1961?
However, when the income tax appeals for the assessment years 1964 65 to 1967 68 came up before the Tribunal, it took the view that the assessee was number taxable in respect of any part of the income of the estate of Balabhai Damodardas for these assessment years.
This view had also been upheld by the Gujarat High Court in its judgment reported at Navnitlal Sakarlal C.W.T. 1977 105 I.T.R.512.
