Assessment order passed in the name of a deceased assessee treated as curable irregularity; legal heirs liable after rectification.

Assessment order issued in the name of a deceased taxpayer where death was not verifiably intimated is a curable assessment irregularity rather than void ab initio; therefore legal heirs shown on record are liable and the defect must be rectified under the statutory succession mechanism, with the assessment sustained unless procedural requirements for valid intimation of death are met. Lack of surrendered PAN or effective proof of death means the assessing officer cannot be imputed with knowledge of death, and the assessment can be regularised by bringing legal heirs on record.

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Issues: Whether an assessment order passed in the name of a deceased assessee is void ab initio or is an irregularity curable by bringing legal heirs on record under section 159 of the Income-tax Act, 1961.

Analysis: The proceedings and return were filed in the name of the deceased without surrender of PAN or verifiable intimation of death to the department; there is no evidence that the Assessing Officer had actual knowledge of the death prior to passing the order. Section 159 treats legal representatives as the assessee for substitution and filing obligations. Prior Tribunal decisions applying section 159 distinguish between orders void for want of jurisdiction and orders that are irregular where jurisdiction was validly assumed or where the department lacked notice of death. Where the Assessing Officer lacked notice of death and the legal heirs failed to place verifiable intimation on record, the defect can be remedied by substituting legal heirs and reframing the assessment after issuing notices and affording opportunity of hearing.

Conclusion: The assessment order is not void ab initio but is an irregularity curable under section 159; the matter is set aside to the Assessing Officer to bring legal heirs on record, issue statutory notices, allow hearing and reframe the assessment in accordance with law.

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