COMMISSIONER OF INCOME-TAX, BOMBAY vs JAMES ANDERSON

The Supreme Court held that under Section 24B of the Income Tax Act, the legal representative of a deceased shareholder does not automatically acquire the rights of the shareholder concerning shares registered in the deceased's name. The Court ruled that the legal representative is only liable for tax on income actually received or deemed to be received during the year of account in which the shareholder died, and not for income deemed to be distributed after the shareholder's death. The assessment made on the respondent was invalid as it did not comply with the provisions of the Income Tax Act regarding the taxation of the deceased's estate.