Penalty orders passed after an assessee's death are invalid because penalty cannot be imposed on a deceased person.

Penalty orders under the Wealth-tax Act could not be sustained where, although the return obligation under section 14(1) and penalty proceedings under section 18(1)(a) were initiated during the assessee's lifetime, the orders were actually passed after his death. A penalty cannot validly be imposed on a deceased person, and that defect went to the root of the orders' validity. The penalty orders were therefore invalid and were set aside, with refund directed if the penalties had already been collected.

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Issues: Whether penalty orders passed under the Wealth-tax Act against an assessee after his death could be sustained.

Analysis: The returns were required under section 14(1) of the Wealth-tax Act, 1957 and penalty proceedings were initiated under section 18(1)(a) of that Act while the assessee was alive. However, the penalty orders were actually passed after the assessee had died. In such circumstances, a penalty cannot validly be imposed on a dead person, and the defect goes to the root of the validity of the orders.

Conclusion: The penalty orders were invalid and were set aside, with a direction to refund the penalties if already collected.

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