Reassessment jurisdiction depends on valid service of section 148 notice and substitution of legal representatives after death.

Service of notice under section 148 is a jurisdictional prerequisite for reassessment; where the notice was sent to an old address, returned undelivered, and no material showed actual service during the assessee's lifetime, reassessment could not rest on mere issuance of notice. After the assessee's death, proceedings could continue only by bringing the legal representatives on record under section 159(2) and issuing notices in their names. An assessment framed against a deceased person without impleading legal heirs is not legally sustainable.

---

---

Issues: (i) whether notice under section 148 was validly served so as to confer jurisdiction for reassessment; and (ii) whether, after the assessee's death, the Assessing Officer was required to bring the legal representatives on record under section 159(2) before continuing the proceedings and passing the assessment order.

Issue (i): Whether notice under section 148 was validly served so as to confer jurisdiction for reassessment.

Analysis: Service of notice under section 148 is a jurisdictional prerequisite for reassessment. The record indicated that the notice issued at the assessee's old address was returned undelivered, and the Revenue was unable to produce material showing actual service on the assessee during his lifetime. In such circumstances, the reassessment proceedings could not be sustained on the basis of mere issuance of notice.

Conclusion: The notice under section 148 was not validly served and the reassessment was without jurisdiction.

Issue (ii): Whether, after the assessee's death, the Assessing Officer was required to bring the legal representatives on record under section 159(2) before continuing the proceedings and passing the assessment order.

Analysis: Once the assessee had died, the proceedings could validly continue only after bringing the legal representatives on record and issuing further notices in their names. The assessment folder and order did not show compliance with section 159(2), and subsequent notices continued in the name of the deceased assessee. An assessment made in the name of a dead person without impleading the legal heirs is not legally sustainable.

Conclusion: The assessment was vitiated for failure to implead the legal representatives and for being framed against the deceased assessee.

Final Conclusion: Both legal grounds succeeded, the impugned assessment and appellate order were quashed, and the assessee obtained complete relief.

Ratio Decidendi: A reassessment is void where notice under section 148 is not actually served on the assessee, and proceedings cannot be continued against a deceased assessee unless the legal representatives are brought on record under section 159(2).

---