Estate of Vasant Patki Vs DCIT (ITAT Mumbai)
The ITAT Mumbai considered an appeal filed by the assessee against the order of the CIT(A), Kolkata, dated 12 November 2025 for AY 2022-23. The assessee had filed its return declaring total income of Rs.11,05,495. While processing the return under Section 143(1), the CPC accepted the returned income but computed tax at the rate applicable to an artificial juridical person (AJP), resulting in a demand of Rs.3,79,957. The assessee filed a rectification application under Section 154, contending that tax should be levied under Section 168 at the slab rates applicable to an individual, but the application was rejected.
Before the CIT(A), the assessee challenged the tax treatment of the estate of Late Shri Vasant Janardan Patki. The CIT(A) observed that Section 168(1) provides for taxation of income of a deceased person’s estate in the hands of the executor. According to the CIT(A), where there is only one executor, the income is taxable as if the executor were an individual, whereas where there is more than one executor, taxation is at the rate applicable to an AOP. The CIT(A) therefore directed application of the maximum marginal rate under Section 167B on the basis that more than one executor was involved.
