NAVNIT LAL SAKAR LAL vs COMMISSIONER OF INCOME TAX

The Supreme Court held that under Section 168 of the Income Tax Act, 1961, the income from the estate of a deceased person is chargeable to tax in the hands of the executor until the estate is fully administered. The Court found that the estate had not been completely administered due to outstanding estate duty liabilities, thus the income should not be assessed in the hands of the legatees. The High Court's ruling was overturned, and the appeals were allowed, confirming that the executor remains liable for tax until the estate is fully distributed.