J. N. SHARMA versus H.H. VIJAYAKUVERBA MAHARANI OF MORVI AND OTHERS

Citation: [1966] 2 S.C.R. 618 · Decided: 17-11-1965 · Supreme Court of India · Bench: K. SUBBA RAO · Disposal: Appeal(s) allowed

Judgment (excerpt)

618 
I. N. SHARMA 
v. 
H.H. VUA Y AKUVERBA MAHARANI OF MORVI AND 
OTHERS 
November 17, 1965 
[K. SUBBA RAO, J. C. SHAH AND s. M. Snoo, JI.] 
Expenditure Tax Act 1957 (29 of 1957), s. 18-A<sessee dying 
before Act came into force-Whet.her expenditure incurred by deceased 
liable to tax-Liability of legal representatives to be assessed. 
The Expenditure Tax Act, 1957 was brought into force with effect 
from April 1, 1958. The respondents executors under the will of M-
were served a notice under s. 13(2) of the Act requiring them to fur-
nish a return in respect of the expenditure incurred by M 
between 
April 1, 1957 and August 
1957 the date of his death. 
The res-
pondents objected that the Act did not apply to M because he had died 
before the date on which the Act came into force and on that account 
the respondents as executors of his will were not liable to submit the 
return demande.d. The contention was overruled by the Expenditure-tax 
Officer whereupon the respondents filed a writ petition in the High Court 
praying that the proceedings be quashed. The High Court held that the 
charge under the Act in respect of expenditure incurred in the relevant 
previous year to the assessment year 1958-59 was not on tbe estate of any 
individual or any Hindu undivided family: it was on the individual or 
the Hindu undivided family incurring the expenditure, and as it was im-
posed for the first time on April 1, 1958, unless the unit of assessment 
was in existence1 on the date when the Act came into force, no tax could 
be levied. 
With certificate ,granted by tlJe. High Court the Revenue 
came to this Court. 
HELD : (i) In terms sub-s. (1) of s. 18 imposes liability upon the 
legal representatives of a person who dies, to pay out of his estate, ex-
penditure-tax assessed as payable by such person, or any sum which 
would have been payable by him if he had not died. There is nothing 
in the expression 'where a person dies' or in the context in which it 
occurs which suggests that it was intended thereby to restrict the opera· 
tion of the sub-section to cases of persons dying after the Act was brought 
into force. 
[622. C·Dl 
(ii) In the context of the declared liability under sub-s. (1) and the 
provisions of sub-s. (3) of s. 18 which make sections 13, 14 and 15 
of the Expenditure Tax applicable to the executor, adm.inistr:ator or 
legal representative, as they apply to any person, it would be difficult 
to hold that the legislature has not expressed its intention clearly so as to 
render the estate of a deceased pe,rson liable to be assessed to expenditure 
tax merely because he had died before that date in which this Act was 
brought into force. 
[625 D-E] 
Ellis Reid v. Commissioner of Income-tax, 5 I.T.C. 100 : I.L.R. 55 
Born. 312 and Income-tax Commissioner Bombay v. D. N. Mehta, 3 
LT.R. 147, considered. 
HJ 
The judgment of the High Court had therefore to set aside. 
[625 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 841 of 
1964. 
A 
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B 
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c 
D 
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E 
1
F 
G 
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H 
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3. N. SHARMA V. MAHARANI (Shah, J.) 
619 
A 
Appeal from the judgment and order dated October 12, 1961 
of the Bombay High Court in Misc. Application No. 379 of 1959. 
A. V. Viswanatha Sastri, N. D. Karkhanis, R.H. Dhebar and 
R. N. Sachthey, for the appellants. 
N. A. Palkhivala, 0. P. Malhotra, 1. B. Dadachanii, for the 
B respondents . 
The Judgment of the Court was delivered by 
Shah, J. The Expenditure-tax Act 29 of 1957 which received 
the assent of the President on September 17, 1957, was brought 
into force on April 1, 1958. The Act provides for levy of tax on 
c expenditure at the rate or rates specified in the Schedule to the 
Act, for every financial year commencing on and from the first 
day of April, 1958, in respect of the expenditure incurred by any 
individual or Hindu undivided family in the previous year. 
His Highness Mahendrasinghji, Ruler of Morvi died on August 
17, 1957, having made a will appointing the respondents to this 
D appeal as executors of his estate. The Expenditure-tax Officer 
issued a notice under s. 13 (2) of the Expenditure-tax Act, 1947, 
requiring the respondents to furnish a r.eturn of the expenditure 
incurred by Mahendrasinghji for the period between Aprill, 1957 
to August 17, 1957. The respondents submitted that the Act 
K did not apply to Mahendrasinghji because he had died before the 
date on which the Act came into force, and on that account the 
respondents as executors of his

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