Law:

Section:

Section 159 of the Income-tax Act, 1961-Legal representative-Assessment of-ITO com-pleted assessee's assessment in his name after one year of his death-Assessment order for assessment year 1962-63 showed that assessee's son appeared before ITO with his advocate but fact of assessee's death nowhere mentioned in assessment order-In assessment order for assessment year 1963-64, assessee described as "n through his legal representative"-Whether assessments were a nullity-Held, on facts, no-Whether AAC could set aside assessments and direct ITO to frame proper assessments on legal represen-tatives-Held, on facts, yes Facts For the assessment years 1962-63 and 1963-64, the ITO completed the assessment of the assessee N, on 20-12-1965 and 25-1-1966, respectively. Meanwhile N had died on 5-11-1964. The assessment order for the assessment year 1962-63 did not state any where that the assessee had died, but it did show that the assessee's son, R, had attended the proceedings along with his advocate and the case had been discussed. In the assessment order for the assessment year 1963-64, the name of the assessee was shown as "N through the legal representative R". On appeal, the AAC held that the proceedings were valid till the death of the assessee but thereafter the ITO had not proceeded properly. He directed the ITO (i ) to take up the proceedings again and assess the assessee's legal heirs, and (ii) to follow the procedure of law and frame proper assessments. On second appeal, R objected to the remand and the AAC's direction on the ground that it had the effect of extending this period of limitation for making the assessments. The Tribunal held (i) that the proceedings were a nullity ; and (ii) that the AAC could only set aside the assessment, but could not do the same with a direction to frame a proper assessment. On reference : Held 1. The legal effect of the provisions made in section 159 as applied to the present case would be that on the demise of the original assessee, N, the proceedings which had already commenced could be continued against the legal representatives. The section, however, is silent as to how the legal representatives are to be proceeded…

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