EXECUTORS OF THE ESTATE OF J.K. DUBASH vs COMMISSIONER OF INCOME TAX, BOMBAYCITY.

The Supreme Court held that under Section 25(4) of the Indian Income-tax Act, 1922, the succession to a business occurs at the time of the testator's death, not at the time of sale by the executors. The Court affirmed the Bombay High Court's decision, stating that the executors, upon the testator's death, became personally liable as assessees and carried on the business as a going concern. The interpretation of 'succeeded in such capacity' includes the executors' role in managing the business for the estate's benefit, establishing a clear legal principle regarding succession and tax liability.