TaxTMI 
TaxTMI 
2010 (3) TMI 768
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....papers and girvi books found at the time of the search. However, during hearing of these appeals, the Id. Counsel for the assessee Shri K.C. Agrawal raised a legal ground whether assessment can be framed on a dead person. The Id. Counsel for the assessee pointed out that search was carried out on 13.9.1990 and the deceased assessee died on 2.2.1990 i.e. prior to the date of search and the husband of the assessee also died on 18.3.2009. It was also pointed out that the L/H is also a drug addict having no knowledge of accountancy and is not under the normal state of mind. The L/H also lost both his parents in a very short span prior to search and also that the L/H was not cross-examined about transactions. It was painted out that even in the ....
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....died on 2.2.1990 and the search was conducted thereafter on 13.9.1990. In such a situation, we are of the considered opinion that no assessment can be framed on a dead person because u/s 159 proceedings could be continued against the legal representative of the deceased assessee only if the same had same already been started during the life time of the assessee. In the present appeal, since the assessee had already died on 2.2.1996 and the search was conducted after his death on 13-9-1990, therefore , no valid assessment could be framed on the deceased person. Our view finds support from the ratio laid down in the following cases: 1. CIT vs. Rakesh Kumar [2009] (313 ITR 305) (P & H); 2. R.C. Jain (Deed.) vs. CIT and Others (....
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....ated by distinct substantive provisions. It was held in negative. On another question whether it could be said that non-service of notice u/s 143(2) against nine out ten legal representatives of deceased B invalidated assessment orders. It was also decided in negative. However, in the present appeal the issue before us is different i.e. whether the assessment can be framed on a dead person, therefore, the facts of the aforesaid case are not applicable to the facts of the present appeal, consequently, this judicial pronouncement may not help the revenue. 4. Another plea raised by the learned Sr. DR is that section 159(2) is applicable as per which any proceeding which could have been taken against the deceased, if he had survived, may be ....
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....ay come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with. (5) The provisions of sub-section (2) of section 161, section 162. And section 167. Shall, so far as may be and to the extent to which they are not inconsistment with the provisions of this section, apply in relation to a legal representative. (6) The liability of a legal representative under this section shall, subject to the provisions of sub-section (4) and sub-section (5t. be limited to the extent to which the estate is capable of meeting the liability- " [Emphasis supplied] If the aforesaid section is analysed, we are of the view that section 159(2) is subject to sub-sect....