Tribunal sets aside assessment order for deceased assessee, emphasizing importance of involving legal heirs.

The Tribunal allowed the appeal, setting aside the assessment order completed in the deceased assessee's name due to the failure to involve legal heirs as required by law. The judgment emphasized the importance of following legal procedures and involving legal heirs in such cases to ensure a valid assessment process.

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Issues:
Challenge of completion of assessment in the name of deceased assessee without bringing legal heirs on record.

Analysis:
The appeal was filed challenging the assessment completed in the name of the deceased assessee without involving legal heirs. The assessee's wife informed about the death of the assessee during the assessment proceedings. The AO proceeded ex parte and concluded the assessment in the deceased assessee's name, adding capital gains to the total income. The legal heir challenged the assessment order before the CIT(A), who dismissed the appeal. The CIT(A) held that the notice issued by the AO when the assessee was alive was valid, and subsequent proceedings were legal. The legal heir contended that proper opportunities of being heard were not provided during assessment proceedings. The CIT(A) found no fault on the AO's part in allowing an opportunity to be heard. The legal heir then appealed the decision.

During the hearing, the legal representative argued that the assessment was completed without involving legal heirs despite being informed of the assessee's demise. The Departmental Representative supported the lower authorities' orders. The Tribunal noted that the AO initiated scrutiny proceedings and issued notices, but after being informed of the assessee's death, did not involve the legal heir or issue statutory notices to them. The assessment was concluded ex parte in the deceased assessee's name. The Tribunal held that the assessment in the deceased person's name rendered the order null and void. The AO failed to bring the legal heir on record as required by law. Thus, the assessment order was set aside. Other issues raised in the appeal were deemed academic and infructuous.

In conclusion, the Tribunal allowed the appeal, setting aside the assessment order completed in the deceased assessee's name due to the failure to involve legal heirs as required by law. The judgment emphasized the importance of following legal procedures and involving legal heirs in such cases to ensure a valid assessment process.

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