Invalid notice to deceased assessee does not nullify a timely return by a legal representative, but all heirs must be impleaded.

A notice issued in the name of a deceased assessee is invalid, but that defect does not by itself nullify a return filed in time by a legal representative or render the resulting assessment jurisdiction. Where the estate is being assessed, all legal representatives must be brought on record and notified so the assessment binds the estate properly. The procedural defect in the original notice therefore does not defeat the assessment, but completion of assessment must follow notice to all legal representatives.

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Issues: (i) Whether a notice issued under section 22(2) of the Indian Income-tax Act, 1922 to a deceased person was invalid so as to vitiate the return subsequently filed by one of the legal representatives and the assessment made thereon. (ii) Whether the Tribunal was right in directing the Income-tax Officer to set aside the assessment and make a fresh assessment after bringing all the legal representatives on record.

Issue (i): Whether a notice issued under section 22(2) of the Indian Income-tax Act, 1922 to a deceased person was invalid so as to vitiate the return subsequently filed by one of the legal representatives and the assessment made thereon.

Analysis: The notice issued in the name of a dead person was bad in law and could not found a return as having been filed in pursuance of that notice. However, the return filed by the legal representative within time could not be treated as non est merely because the original notice was invalid. The return was required to be acted upon, and the assessment based on it was not without jurisdiction. The principle applied was that an otherwise valid return is not rendered ineffective merely because it followed an invalid notice.

Conclusion: The assessment was not vitiated on the ground that the return was invalid or that the Income-tax Officer lacked jurisdiction.

Issue (ii): Whether the Tribunal was right in directing the Income-tax Officer to set aside the assessment and make a fresh assessment after bringing all the legal representatives on record.

Analysis: Since the return was filed only by one legal representative and it emerged that there were other legal representatives as well, the assessment had to be completed after notice to all such legal representatives. The Tribunal's direction to make a fresh assessment after impleading all legal representatives was consistent with the proper procedure and with the need to bind all persons representing the estate of the deceased.

Conclusion: The Tribunal was correct in directing a fresh assessment after bringing all the legal representatives on record.

Final Conclusion: The reference was answered wholly against the assessee and the assessment-related directions of the Tribunal were sustained.

Ratio Decidendi: An invalid notice to a deceased assessee does not, by itself, nullify a return validly filed by a legal representative within time, but the assessment of the deceased's estate must be made after bringing all legal representatives on record.

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