Law:

Section:

Section 159 of the Income-tax Act, 1961 - Legal representatives - Premises of deceased 'B' were searched during his life-time - Notice was issued to him after his death to file return which was not filed - Thereafter, notices under section 142 were issued to him, assessment was completed and notice of demand was issued - Whether since proceedings had not been initiated by a notice while 'B' was alive, department could have completed proceedings only after issuing notice to legal representatives of deceased - Held, yes - Whether, therefore, order of assessment and demand notice were to be set aside and proceedings were to be remitted to assessing authority for completing assessment after giving an opportunity to petitioner, widow of deceased 'B', to file a return or to file objections, if any, to notice under section 142 - Held, yes [matter remanded] FACTS The premises of 'B' were searched on 17-9-1993. He died on 6-4-2001. On 6-5-2002, a notice was issued to him to file a return. Since no return was filed, notices under section 142 were issued to him on 13-6-2002 and 20-6-2002. The assessment was completed and notice of demand was issued. On writ : HELD A proceeding against a deceased person, culminating in an order of assessment, has to be regarded as a nullity in the sense that it was passed against a dead person. But in the instant case, the submission of the revenue that the assessment was completed against 'B' was to be accepted in view of the fact that the authority concerned was not made aware of his death. But since the proceedings had not been initiated by a notice while 'B' was alive, the department could have completed the proceedings only after issuance of notice to the legal representatives of 'B'. Since that was not done, on that short ground the order of assessment and the demand notice were to be set aside.[Para 4] An opportunity should be given to the department to complete the proceeding, after giving an opportunity to the writ petitioner, widow of deceased 'B', to file a return or an objection to the notice under section 142. However, since the widow had appeared before the High Court, fresh notice need to be given to her. It would be open to…

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