LexTHE COMMISSIONER OF INCOME-TAX, BOMBAY CITY I, BOMBAY versus AMARCHAND N. SHROFF, BY HIS HEIRS AND LEGAL REPRESENTATIVES
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i S.C.R. SUPREME COURT REPORTS 699 .Penal Code and, therefore, the courts have rightly held .that the appellant had committed the offence of theft. No other point was pressed before us. In the result the appeal fails and is dismissed. Appeal dismissed. THE COMMISSIONER OF INCOME-TAX, BOMBAY CITY I, BOMBAY v. AMARCHAND N. SHROFF, BY HIS HEIRS AND LEGAL REPRESENTATIVES (]. L. KAPUR, M. HIDAYATULLAH and J. C. SHAH, JJ.) Income ]'ax-Liability to tax of income of deceased person- S'Uch income in hands of the legal representatives-Income of the previo'Us year-Indian income-tax Act, 1922 (11 of 1922), s. 24.B. Sub-section (~) of s. 24B of the Indian Income-tax Act, 1922, provided that where a person dies his heirs and legal representatives ate liable to pay out of the estate of the deceased the tax assessed as payable by the deceased or any tax which would have been payable under the Act by the deceased if he had not died. A who was one of the three partners in a firm of solicitors died on July 7, 1949, and thereafter the partnership was carried on by the other two partners till December 1, 1949, when R, son of A, joined the firm as the third partner. After the death of A the arrangement between the various partners in regard to the realisations of the old outstandings was thal in respect of the work done up to the death of A the realisations were to be divided between A and the other two partners. The firm 1962 P;·are Lal Bhargava v. State oj Rajasthan SubbtJ. Rao, J. 1962 Octohlr, 23. 1962 TM CommissWrwr of lntflme-Tax, Bombay City I, Bomba_y v. Am.,chand N. Skrajf 700 SUPREME COURT REPORTS (1963] SUPP. kept its accounts on cash basis. For each of the five assessment years, 1950-1955, certain amounts were received by the heirs and legal representatives of A out of the outstandings. Procee- dings were started by the Income-tax Officer under s. 34 of the Indian Income-tax Act, 1922, in respect of the aforesaid income, and the various amounts were assessed to income-tax in the hands of the respondents, the heirs an<l legal representatives of A, ur.der s. 34 (I) (b) read withs. 24Bofthe Act, for the five respective assessment years, l)!I the footing that the amounts which were received by the heirs and legal representatives of A after his death should be deemed by virtue of the words in sub-s. (l) of s. 24B to be income received by A and liable to tax under that sub-section. He/,d, that the words "or any tax which would have been payable by him under this Act if he had not died" under s. 24B(l) of the Indian Income-tax Act, 1922, are restricted to the income received by the deceased person before his death and to the income received after his death by his heirs and legal representatives in the "previous year" and which had not been assessed but would have been assessed as income received by him, if death had not. taken place. The provisions of s. 24B do not extend to tax liability of the estate of a deceased person beyond the previous or the account year in which that ,person dies; Apart from s. 24B no assessment can be made in respect of the income of a person after his death. He/,d, that as the income was received after the expiry of the previous year in which A died it was not liable to be taxed as the income of A in the hands of his legal representatives in the several years of assessment. Allen v. Trekearne, (1938) 22 Tax Cas. 15, ElliB G ReW. v. Commissioner of Income-tax Bo111b11y, 5 I. T. C. JOO and Wallace Brother ,1; Go. Ltd. v. Gommis&ioner of Income-fll:i;, Bombay City, [ 1948] 16 I. T. R. 2 40, referred to. CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 15 to 19 of 1962. Appeal from the judgment and order dated October 10, 1958, of the Bombay High Court in Income-tax Reference No .. 22 of 1958. H. N. ~anyal, Additi.mu;l Solicitar-Geneml of India, N. JJ. lforkTumis and R. N. Sachthey, for the appellant. 1 S.C.R. SUPREME COURT REPORTS 701 A. V. Viswanatha Sastri, J. B. Dadachnnji, 0. 0. Mathur and Raniwler Narain, for the respon- dents. 1962 The CommissiMtt' ~ Income-tax, Bombl City !, Bomh•1 v. 1962. October, 23. The Judgment of the Court AmarchandN. Shro, was delivered by KAPUR, J.-These appeals pursuant to a certi- ficate of the High Court of Bombay raise the question of interpretation of s. 24B of the Income-tax Act in an Income-tax Reference. The question referred was answered in the negative and against
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