THE COMMISSIONER OF INCOME-TAX,BOMBAY CITY I, BOMBAY vs AMARCHAND N. SHROFF, BY HIS HEIRSAND LEGAL REPRESENTATIVES

The Supreme Court interpreted Section 24B(1) of the Indian Income-tax Act, 1922, holding that tax liability for income received by a deceased's heirs is limited to income received before death and income that would have been assessed had the deceased lived. The Court ruled that income received after the previous year of the deceased's death cannot be taxed as income of the deceased. Consequently, the assessment of income in the hands of the legal representatives for the years following the death was invalid, leading to the dismissal of the appeal.