Assessment Order Quashed: Court Requires Notice to All Legal Heirs for Fair Hearing in Tax Case.

The HC of Madras quashed the assessment order issued against the petitioner, acting as the legal representative of the deceased assessee, due to the absence of a show cause notice and personal hearing. The court mandated that proceedings continue only after issuing proper notice to all legal heirs to ensure a fair hearing.

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Issues involved:
The main challenge is the assessment order passed in the name of the petitioner as the legal representative of the deceased assessee without issuing any show cause notice or affording an opportunity of personal hearing.

Summary:

Issue 1: Impugned Assessment Order in the Name of Petitioner
The petitioner challenged the assessment order issued in her name as the legal representative of the deceased assessee without proper notice or hearing. The respondent argued that they can proceed against legal heirs as per Section 159 of the Income Tax Act, 1961. The court noted that while the law holds legal representatives liable for the deceased's tax obligations, in this case, the assessment order was issued without notice or hearing to the petitioner. The court directed the quashing of the impugned Assessment Order and ordered proceedings to continue after issuing a show cause notice to all legal heirs for proper hearing.

Conclusion:
The High Court of Madras, in the case challenging the assessment order passed in the name of the petitioner as the legal representative of the deceased assessee, quashed the order and directed the respondent to proceed after issuing proper notice to all legal heirs for a fair hearing.

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