Invalid notice to a deceased assessee and absence of legal representation defeated the assessment against the alleged heir.

A scrutiny notice issued under section 143(2) in the name of a deceased assessee was invalid because it was directed to a non-existent person. The record also failed to show that the respondent was the deceased's legal heir or legal representative; the will instead directed the property to devolve on a trust, so section 159 of the Income-tax Act did not apply to the respondent and the intestate succession rules under the Hindu Succession Act were irrelevant. The notice and the resulting assessment in the alleged heir's hands were therefore not sustainable, and the deletion of the addition was upheld.

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Issues: Whether the assessment and addition made in the hands of the alleged legal heir were sustainable when the notice under section 143(2) was issued in the name of a deceased person and no material established that the respondent was the legal representative of the deceased assessee.

Analysis: The deceased assessee had expired before issuance of the scrutiny notice, so the notice in his name was issued to a non-existent person and was therefore invalid. The record also did not establish that the respondent was the legal heir or legal representative of the deceased. The will showed that the deceased had died testate and had directed his properties to devolve upon a trust, not upon the respondent. In such circumstances, section 159 of the Income-tax Act, 1961 applies only to a person who can be treated as a legal representative, and the general rules of intestate succession under sections 8 and 15 of the Hindu Succession Act, 1956 had no application.

Conclusion: The notice and the consequent assessment in the hands of the alleged legal heir were not valid, and the deletion of the addition was upheld.

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