Law:

Section:

Section 159 of the Income-tax Act, 1961 - Legal representative - Assessment order was made without issuing notices to all legal representatives of deceased-assessee on filing of return by one of legal representatives - Whether assessment order suffered from procedural irregularity which was liable to be corrected - Held, yes - Whether, therefore, assessment order was neither void nor liable to be annulled - Held, yes FACTS The assessee died leaving behind his legal heirs and representatives. Because of the death of the assessee, no return was filed initially. However, in pursuance of notices under sections 142(1) and 143(2) of the Act, the widow of the assessee filed the return. The Assessing Officer completed the assessment. On appeal, the Commissioner (Appeals) set aside the assessment order and remitted the matter back to the Assessing Officer with a direction to issue notices to all the legal representatives. The Assessing Officer once again failed to issue notices to all the legal representatives and made fresh assessment. On appeal, the Commissioner (Appeals) set aside the order of the Assessing Officer and remanded the matter to the Assessing Officer directing again to issue notices to all the legal representatives. On second appeal, the Tribunal annulled the assessment order. On reference : HELD The fact of the acceptance of the finding that the Income-tax Officer had not acted bona fide and diligently in issuing notices to all the legal representatives, could not be effaced. It was admitted that no notice at all was served on them. [Para 9] The controversy as to the effect of not serving one or more of the legal representatives of the assessee on the assessment made on the returns filed by one of several legal representatives has been decided by the Supreme Court in CIT v. Jai Prakash Singh [1996] 219 ITR 737/ 85 Taxman 407 . [Para 10] The assessment order made without notices to all the legal representatives of the deceased on submission of the returns by one of the legal representatives only and on being challenged for want of notices to all the legal representatives, suffered from procedural irregularities and was liable to be corrected by setting…

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