COMMISSIONER OF INCOME-TAX BIHAR AND ORISSA vs MANAGER, COURT OF WARDS ESTATE, BETTIAH

The Supreme Court held that the Income Tax Officer's assessment on the Manager of the Court of Wards regarding the Bettiah estate was improper while the title suit was pending. The Court ruled that the estate could not be considered to have vested in the State by escheat until the litigation was resolved, thus the income tax authorities could not impose tax during this period. The High Court's decision was set aside, and the proceedings were to be finalized post-litigation disposal, allowing for a supplementary statement if necessary under Section 66-A(2) of the Income-tax Act of 1922.