ESTATE OF NALINI MANILAL ,MUMBAI vs. ITO WARD 20(1)(1), MUMBAI

PER OM PRAKASH KANT, AM This appeal has been preferred by the assessee against order dated 27.03.2025 passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals) – 1, Visakhapatnam [hereinafter shall be referred as ‘the Ld. CIT(A)’] for assessment year 2024-25, raising following grounds: 1) Under the facts and in the circumstances of the case and in law, the Assessing Officer (CPC) erred in levying Income Tax on the Total Income of the Appellant of Rs 3,02,710/- at the Maximum

Marginal Rat calculated at thereby a) Violating th
Finance Act, 2
Tax applicabl
Maximum Ma b) Overlookin assessed as provisions of tax liability.
c) Disregardi
Mumbai ITAT d) Disregardin
Appellant for 2) Under the f the Commissi to the AO to v
Tax on the to Sec. 168 and of Sec. 168(1) a) Overlooking is allotted ju
168(1)(b) of th at MMR.
b) Deviating assessment is deceased on assessment assessment m such the prov the case of th c) Neglecting
168(1)(b) mer the tax liabili as the deceas d) Failing to Mumbai in ca
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ITA te of Tax of Rs. 94,446/- instead of t normal slab rates applicable to the he Paragraph A of Part I of the First Sch
2024 which clearly establishes that the c le to an AOP is the Normal Rate of Tax arginal Rate (MMR) of Tax.
ng the fact that the executors of the d
AOP only for statistical purpose in Sec168(1) of the Act and not for the co ing the case laws of the MP High Co
T.
ng the Appellate Order of the CIT(A) in th the Asst. Year 2023-24
facts and in the circumstances of the case ioner of Income tax (Appeals) erred in giv verify the Income of the Appellant and Re otal Income of the Appellant as per the p
167B of the Act, instead of only as per th
) of the Act, thereby g the circumstance that the PAN in the s ust for satisfying the technical requ he Act and not for the purpose of charging from the fact that for all practical pu s of the deceased and the incidence of t nly. Section 168(2) clearly establishe of the executor is made separately made on him in respect of his own inc visions of Sec. 167B of the Act are not a e Appellant.
that the Appellant is regarded as a rely for statistical purpose whereas for ty of the deceased, normal slab rates sh sed was an Individual on the date of the d consider the correct facts of the judgem ase of Estate of Late Harkishin Bhojraj
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f Rs. 141/- e Appellant, hedule of The correct rate of and not the deceased are view of the mputation of ourt and the he case of the e and in law, ving direction
-compute the provisions of he provisions tatus of AOP irement u/s g the tax rate urposes, the tax is on the es that the y from any come and as applicable in an AOP u/s r discharging hall be levied death.
10,266/-.
[B] Relief Pray
The appellan
95,560/- mad
Rate includin instead of the A of Part I o determining r
2. Briefly stated, th
Smt. Nalini Manilal, h executor(s) appointed return of income in While processing the (CPC) computed the t rate (MMR), on the g capacity of an AOP.
2.1 Aggrieved, the a CIT(A), contending th of an AOP, the tax
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C (ITA No. 2324/Mum/2021) which clea e two executors and just not one execut ncludes that the tax shall be charged at he First Schedule of Finance Act.
ering the judgement of Honourable MP H
Vs. GBJ Sheth and Anr. [1982]1331T held that "though the assessment is of for all practical purposes, it is the asses d the status of AOP is for statistical purpo facts and in the circumstances of the case alculation of Tax liability at MMR has r of Interest u/s 234B & 234C amoun yed:
nt therefore prays, to delete the dem de on account of computing the tax liab ng the excess levy of Interest u/s 23
e normal slab rates of Income Tax as spec of the First Schedule of The Finance A refund due to the Appellant of Rs. 9,010
he facts of the case are that upo her estate came to be administe d under her last will. The as the status of an Association of e said return, the Central Pro tax liability by applying the max ground that the assessee was assessee preferred an appeal be hat although the return was file x rate applicable ought to be Estate of Nalini Manilal
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arly mentions tor. The said normal slab
High Court in TR192(MP) in the executor ssment of the oses.
e and in law, resulted into nting to Rs.
mand of Rs.
bility at MMR
34B & 234C cified in Para
Act,2024 and 0/-.
on the demise of ered through the ssessee filed its f Persons (AOP).
ocessing Centre ximum marginal assessed in the fore the learned ed in the status e the slab rate prescribed for an ind
Section 168(1)(a) of Act”). It was submitt was a single indiv
(husband of the dec assessed at the rates contention, the learn us a copy of the last w
3. We have heard riv material on record applicable rate of executor of the estate slab rate as applicab the Act, or at the ma
For ready reference, section 168 of the Ac
Executors.
92 168. (1) Subject as deceased person shall be (a) if there is only individual; or (b) if there are more association of pe and for the purposes of non-resident according a during the previous year
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ITA dividual, in accordance with th the Income-tax Act, 1961 (h ted that the executor appointed vidual, namely, Shri Manilal ceased), and therefore, the esta s applicable to an individual. In ned counsel for the assessee ha will of Smt. Nalini Manilal.
val submission of parties and p
. The core issue for consid taxation—whether the assess e of the deceased, is liable to be ble to an individual under Sect aximum marginal rate as applic
, it is relevant to reproduce t t hereinafter provided, the income o e chargeable to tax in the hands of the y one executor, then, as if the exe e executors than one, then, as if the ersons; this Act, the executor shall be deeme as the deceased person was a reside in which his death took place.
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he provisions of hereinafter, “the d under the will
Jadavji Kenia ate ought to be n support of this as placed before perusel relevant deration is the see, being the assessed at the tion 168(1)(a) of cable to an AOP.
the provision of of the estate of a e executor,- ecutor 93 were an executors were an ed to be resident or ent or non-resident

(2) The assessment of a from any assessment tha
(3) Separate assessments each completed previous date of the death to the estate according to their s
(4) In computing the tota income of the estate of th of, any specific legatee of but the income so exclud year of such specific lega
Explanation.-In this secti administering the estate
3.1 From the plane the Act governs the income of the estate that where there is made as if the incom other hand, where th treated as an AOP maximum marginal r examination of the w of correct facts. Th under:
“1) 1, Nalini residing at 2
Mumbai-400
testament and this is to be m
I have used m bequests con conscious sta
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ITA n executor under this section shall b at may be made on him in respect of h s shall be made under this section on year or part thereof as is included in date of complete distribution to the b several interests 93. al income of any previous year unde hat previous year distributed to, or ap f the estate during that previous year ded shall be included in the total inco atee.
ion, “executor” includes an administra of a deceased person 94. reading above, we find that the e assessment of executors in of a deceased person. The prov only one executor, the asses me were the income of an ind here are multiple executors, the and taxed accordingly, includ rate provisions, depending upon will of the assessee is essential fo he relevant part of the will is i Manilal Kenia of Mumbai, Hindu in 275, J. K. House, Telang Road, Matun
019, do hereby revoke all my wills, co d dispositions here before made by me an my last will and testament.
my judgment and discretion in making thi ntained therein. I am making this will i ate being aware of all my acts and the Estate of Nalini Manilal
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be made separately his own income.
n the total income of the period from the beneficiaries of the er this section, any pplied to the benefit r shall be excluded; ome of the previous ator or other person e Section 168 of respect of the vision stipulates ssment shall be dividual. On the e estate may be ding under the n the facts. Thus or determination reproduced as nhabitant, nga East, dicils and nd declare is will and in my full e bequests contained her own free will state and hea making this w or anger nor while making
3) I am having mutual funds all these whe for the sake o governed by t
4) Whatever any of my a nominees sha the assets are 5) I have m misunderstan my estate and 6) I hereby a executor of m
"My Executo take charge situated an hereinafter a 7) I declare a such investm other assets a convenience assets and n interest in fa declare that a be dealt with the provisions
8) I declare t under this wi not, or having
9) My family
Jadavji Kenia
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ITA rein have been made by me voluntarily a l accord and desire. I am in absolute go alth and I am under no pressure or influe will. My thinking is clear and not clouded is my judgment of people or situations g and signing this testament disposition.
g certain investments in shares, securitie s, deposits, jewelry etc, I am the absolute ere my name stands first. The Joint name of convenience. These investments/asset the provisions of this will.
nominations that I may have made in assets are only for the sake of conveni all hold the asset in trust for the persons e bequeathed as per this will.
ade this testamentary disposition to a nding or disputes amongst my relatives d effects.
appoint Mr. Manilal Jadavji Kenia t my will (hereinafter collectively refer or"). On my demise, I direct my exe of all my estate whatsoever and whe nd to deal with the same in the appearing.
and direct that any nomination made by ents in which my name appears first as and/or effects are intended merely for th and for realization and for dealing w not with the intention of conferring any avour of such nominees and/or joint all such assets shall form part of estate h by my executor and trustees in accord s of this my will.
that the bequest made in favour of my ill, shall stand whether he acts as an ex g acted, retires from such office.
y consists of myself and my husband a and daughter Anju Manilal Kenia.
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and of my od mental ence while by hatred s impaired es, units of e owner of e/s is only ts shall be respect of ience. The s to whom avoid any regarding to be the rred to as ecutor to eresoever manner y me in all s well any he sake of with such beneficial holders. I and shall dance with y executor executor or d Manilal

10) I am the and movable bonds, depos ornaments an convenience, my death sh irrespective of 11) I am en properties.
12) I direct th debts and liab ceremonies, p may be requir
13) I direct m status of our f
14) Subject to of my will, p incidental exp nature and immovable p which I propo
The trustees under:
1) Manilal Jad
The trust sha
The trustee s residue of all situate (herei conditions as a) To recover trust fund an other outgoing b) The Estate will of my Exe is hereinafter c) On the da corpus of the entirety to my
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ITA sole and absolute owner of immovable p properties such as shares, deposits, de sits with public provident fund, jewe nd units. The joint names are only for th and all the assets belonging to me at th hall be governed by the provisions of f the fact that they may be held in joint na titled to make this will in respect of hat my executor shall out of my estate p bilities including all taxes and expenses f probate fees, legal expenses and other cou red and also expenses for administering m my executor to give charity as may deem family.
o the all necessary expenses for obtainin payment of estate duty if any, and a xpenses, all of my assets/effects of w wheresoever situate and whether m property be transferred to a discretion ose to create by this will.
of the proposed discretionary trust w davji Kenia all be called "ESTATE OF NALINI MANILA shall hold and stand possessed of the my property of whatsoever kind and wh inafter referred to as "Trust Fund") on t follows:- the interest, dividends and any other inco d to pay thereout the charges for collectio gs, if any at his absolute discretion.
e created by this will shall come to an e ecutor, from the date of my death. The s to as "the date of distribution".
ate of distribution, my trustee shall tra e Trust Fund together with accumulatio y daughter Anju Manilal Kenia.
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properties ebentures, ellery and he sake of he time of f this will ames.
all of my pay all my for funeral urt fees as my estate.
m fit to the ng probate any other whatsoever ovable or nary trust will be as AL KENIA".
e rest and heresoever terms and ome of the on and all end at the aid period ansfer the on, if any, d) I hereby ex trustee even application of persons claim in any court of e) Upon any think fit to the have the sam investing and lending or d personal secu firm or comp partner or di entitled to t accountable f reason of suc f) If the Trus trustee or trus g) The Truste reimburse him the trust fund the Trusts and 3.2 In the present
CIT(A) that there we clauses no. 6 of the Manilal Jadavji Ken testatrix, which conc appointed. In such language of Section 1
to be made in the st slab rates.
3.2 However, since evidence placed for t
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ITA xpressly declare and direct that the decis though they may be personally interes f the income, shall be final and abidi ming under this my will and shall not be q of law or otherwise howsoever.
terms and conditions whatsoever as m e intent, my trustee shall in his absolute me full and unrestricted power of purchasi d changing and transporting any inv depositing of any money with or wit urity with any person or company inclu pany in which trustee may be interes irector or otherwise, as if they were a the Trust Fund without being respo for any loss or diminution in price c h investments.
stee hereby appointed feels to appoint stees who he is hereby authorized to do s es or trustee of these presents shall be mself or themselves and pay and discha d all expenses incurred in or about the ex d powers of these presents.”
case, although it was submi ere multiple executors, but fro will as extracted above, it is ev nia was the sole executor ap clusively establishes that only on circumstances, and in ligh
168(1)(a) of the Act, the assessm tatus of an individual and taxed the copy of the will constit he first time before us, and the Estate of Nalini Manilal
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sion of my ted in the ing on all questioned my Trustee discretion ing and of vestments, thout any uding any sted as a absolutely onsible or caused by additional so.
entitled to arge out of xecution of itted before the om the relevant vident that Shri ppointed by the ne executor was ht of the plain ment is required d accordingly at tutes additional e issue as to the applicability of Sectio
CIT(A) in the absen appropriate, in the i file of the learned CI verify the authenticit whether the provisio affording adequate op
3.3 Accordingly, th restored to the file accordance with law.
4. In the result, statistical purposes.
Order pronoun (SANDEEP SING
JUDICIAL M
Mumbai;
Dated: 31/07/2025
Rahul Sharma, Sr. P.S.
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ITA on 168(1)(a) was not conclusively nce of such documentary pro nterest of justice, to restore th
IT(A) for a fresh adjudication. T ty and content of the will, and d ons of Section 168(1)(a) are a pportunity of hearing to the asse he grounds raised in the pres of the learned CIT(A) for deci the appeal of the assessee ced in the open Court on 31/0
/-
S
GH KARHAIL)
(OM PRAK
MEMBER
ACCOUNTA

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ly verified by the of, we deem it he matter to the The CIT(A) shall determine afresh applicable, after essee.
sent appeal are ision afresh, in is allowed for 07/2025. KASH KANT)
ANT MEMBER

Copy of the Order forward
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.

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ITA ded to :

BY ORDER

(Assistant Re

ITAT, Mu

Estate of Nalini Manilal
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R, gistrar) umbai