Assessment against a deceased assessee may be a waivable irregularity, not a nullity, when the legal representative participates without objection.

Under section 159 of the Income-tax Act, assessment proceedings continued in the name of a deceased assessee are not automatically void. Where the legal representative receives notice, participates without objection, and contests the matter on merits, the defect may be treated as a curable irregularity rather than a jurisdictional nullity. Because the statutory protection is intended for the legal representative's benefit, it may be waived by conduct. Whether waiver occurred depends on the facts found, including actual participation and absence of timely objection; without those findings, the consequence for limitation on any fresh assessment cannot be finally determined.

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Issues: (i) Whether an assessment made in the name of a deceased assessee, where the legal representative participated in the proceedings without objection, is a nullity or only an irregularity; (ii) whether such defect can be waived by the legal representative; and (iii) whether, on the facts found, the Tribunal could sustain the question of limitation for a fresh assessment.

Issue (i): Whether an assessment made in the name of a deceased assessee, where the legal representative participated in the proceedings without objection, is a nullity or only an irregularity.

Analysis: The statutory scheme under section 159 of the Income-tax Act, 1961, extends the liability of the deceased to the legal representative and deems proceedings taken against the deceased before death to have been taken against the legal representative. The Court analysed the distinction between nullity and irregularity and held that a breach of the procedural requirements does not automatically destroy jurisdiction. Where the legal representative is in substance before the assessing authority, receives the notices, participates in the proceedings, and invites an assessment on merits, the defect may not amount to a fundamental nullity.

Conclusion: Such an assessment is not necessarily a nullity and may be treated as a gross irregularity rather than a void proceeding, depending on the facts.

Issue (ii): Whether such defect can be waived by the legal representative.

Analysis: The Court held that statutory requirements conceived for the protection of the legal representative, and not in public interest, may be waived. Applying the principle that a party who knowingly allows the proceeding to continue and contests it on merits can be taken to have abandoned a technical objection, the Court held that waiver may prevent the legal representative from later asserting nullity.

Conclusion: The legal representative can waive the objection, and if waiver is established, the assessment cannot later be attacked as a nullity on that ground.

Issue (iii): Whether, on the facts found, the Tribunal could sustain the question of limitation for a fresh assessment.

Analysis: The Court found that the Tribunal had not recorded sufficient findings on the material facts relevant to waiver, participation, and the true nature of the defect. Without those findings, the Court could not finally determine whether the assessment was a nullity or an irregularity, which was essential to deciding whether a fresh assessment was barred by limitation or saved by the statutory exception.

Conclusion: No final answer was given on the referred question and the matter was left to the Tribunal to adjust its decision in accordance with the Court's observations.

Final Conclusion: The reference was not answered on the merits, because the necessary factual foundation for deciding nullity versus irregularity was incomplete.

Ratio Decidendi: In proceedings under section 159 of the Income-tax Act, 1961, defects in continuing assessment against a deceased assessee are not automatically jurisdictional nullities; where the legal representative knowingly participates without objection, the statutory protection may be waived and the defect may amount only to an irregularity.

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