Notice to one legal heir sustains gift-tax proceedings; failure to serve all heirs is only an irregularity, not nullity.

Service of notice on one legal heir was held sufficient to sustain gift-tax proceedings against that heir, and omission to serve every other legal heir was treated as an irregularity rather than a defect that nullified the assessment. The liability for tax, interest and other dues attributable to the deceased donor was confined to the estate inherited by the legal heirs, not the gifted property itself. On that basis, the objection based on defective notice was rejected, the assessment was upheld, and the revenue was permitted to proceed against the inherited estate in accordance with law.

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Issues: Whether assessment proceedings were vitiated for non-issuance of notice to all legal heirs of the deceased donor, and whether the assessee could avoid liability on that ground.

Analysis: The notice under the gift-tax proceedings had been issued to the assessee, who was one of the legal heirs. The legal position applied was that a legal heir who has received notice cannot challenge the proceedings merely because notice was not served on every other legal heir. Non-service on some legal heirs is only an irregularity and does not invalidate the proceedings. The tax, interest and other dues attributable to the deceased donor can be recovered only from the estate inherited by the legal heirs and not from the gifted property itself.

Conclusion: The assessment was not invalidated by omission to issue notice to all legal heirs. The assessee remained liable to the extent of the inherited estate, and the objection based on defective notice was rejected.

Final Conclusion: The appeals succeeded, the Tribunal's order was set aside, and the revenue was held entitled to proceed against the inherited estate in accordance with law.

Ratio Decidendi: Service of notice on one legal heir is sufficient to sustain the proceedings against that heir, and non-service on other legal heirs is only an irregularity that does not nullify the assessment.

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