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PETITIONER: JAMES ANDERSON, ADMINISTRATOR OFTHE ESTATE OF THELATE HENRY
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,BOMBAY
DATE OF JUDGMENT: 04/03/1960
BENCH: DAS, S.K. BENCH: DAS, S.K. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1960 AIR 751 1960 SCR (3) 167 CITATOR INFO : D 1971 SC2270 (4) D 1973 SC1357 (8) F 1976 SC 662 (3)
ACT: Income-tax-Distribution of capital assets-Whether distribution must be in specie-Sale of capital assets by administrator for distribution amongst legatees-Profit on such sales, if amounts to capital gains liable to tax-Income-tax Act, 1922 (XI Of 1922), S. 12B(1), third proviso.
HEADNOTE: The appellant was the administrator of the estate of one Henry Gannon, a resident of British India, who left for the United Kingdom in 1944 and died there in 1945. In the course of administration the appellant sold certain shares and securities belonging to the deceased for the purpose of distributing the assets amongst the legatees and thereby realised more than their cost prime. The excess of sale price over the cost price was treated by the Income-tax Officer as capital gain under s. 12 B 168 of the Income-tax Act and the appellant was assessed to tax on such capital gain for the assessment years 1947-48 and 1948-49. The appellant contended that there had been a distributio...