Commissioner of Income Tax, Bihar and Orissa v. Manager, Court of Wards Estate, Bettiah, (SC) BS109329
SUPREME COURT OF INDIA

Before:- M. Hidayatullah, J.M. Shelat and G.K. Mitter, JJ.

Civil Appeal No. 1172 of 1965. D/d. 24.2.1967.

Commissioner of Income Tax, Bihar and Orissa - Appellant

Versus

Manager, Court of Wards Estate, Bettiah - Respondent

For the Appellant :- Mr. R. H. Dhebar, Advocate, for Mr. R. N. Sachthey, Advocate.

For the Respondent :- Mr. S. P. Varma, Advocate.

Income Tax Act, 1922, Sections 3, 24-B - Assessment - Property/Estate under control of Manager, court of words - Escheat - Appeal pending before High Court - Assessment to be made after disposal of appeal.

[Para 4]

JUDGMENT

Mitter, J. - This is an appeal from a judgment and answer of the High Court of Judicature, Patna, on a certificate granted by it under Section 66A (2) of the Income Tax Act of 1922 corresponding to Section 261 of the Income Tax Act of 1961. The Tribunal referred two questions of law to the High Court under Section 66(1) :

2. The facts of the case are as follows :- Maharani Janki Kuer who was the last holder of the Bettiah Estate in Bihar died on November 27, 1954. For many years past before her death, the estate was under the management of the Court of Wards and continued under such management even after her death as it was not known whether she had left any heirs. Under Section 13 of the Bengal Court of Wards Act (IX of 1879).

3. The High Court on the case stated, referred to Articles 289 and 296 of the Constitution and taking note of the contention urged on behalf of the parties observed :

4. It was asserted on behalf of the respondent-and not denied by the appellant-that the Suit of Suresh Nandan Sinha had been dismissed, but an appeal had been preferred therefrom and was pending. On the facts as the same appear to us at persent it is not possible to hold that the estate of Bettiah has escheated to the State of Bihar. It is obvious that in case of such esheat there can be no assessment to income-tax. The position will be clarified after the appeal by Suresh Nandan Sinha is disposed of. In this view of the matter, the judgment of the Patna High Court is set aside. The proceedings should be finalised after the disposal of the litigation and the High Court may call for a supplementary statement of case, if it thinks necessary. The question as to whether the estate has escheated to the State of Bihar is left open, and the costs of this appeal will abide by the ultimate decision of the High Court. In case it be found that the escheat had taken place, the appellant before us will have to pay the costs of this appeal and if there is no escheat, the Commissioner will have the costs of this appeal.

Order accordingly.