2016 (10) TMI 691

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....sessment on the ground that notice 143(2) of the Income-tax Act, 1961 (hereinafter referred in short "the Act") has not been issued against the legal heir of the assessee, who has died before the statutory notices were served on him. 3. The brief facts of the case are that a search under section 132 of the Act was carried out at the premises of Shri Ramesh Chand Bajpai on 6.2.2013. Shri Ramesh Chand Bajpai died on 29.7.2013. Notice under section 142(1) of the Act addressed to Shri Ramesh Chand Bajpai was issued on 29.10.2013. Pursuant to the said notice to the deceased assessee, Shri Vivek Kumar Bajpai (son of Shri Ramesh Chand Bajpai) replied to the Assessing Officer that the assessee Shri Ramesh Chand Bajpai had died on 29.7.2013. Ther....

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....ee filed the return of income showing total income of Rs. 7,20,810/-. We take note that the Assessing Officer issued notice dated 26.12.2013 under section 143(2) of the Act addressed to Shri Ramesh Chand Bajpai, which was also replied by the son of assessee vide letter dated 15.1.2014. Thereafter another notice dated 10.2.2015 under section 143(2) of the Act was also issued by the Assessing Officer addressed to Shri Ramesh Chand Bajpai and the assessment order was also passed in the name of Shri Ramesh Chand Bajpai. The ld. CIT(A) while passing the impugned order, has taken into consideration all these facts and the said facts could not be controverted by the ld. CIT (DR) before us. The fact is that there was a search conducted on 6.2.2013 ....

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....0 (Bom), the Bombay High Court pointed out that according to the law as it then stood, where a person died after the commencement of the assessment year but before his income of the previous year was assessed his executor was not liable to pay the tax and if the death occurred whilst assessments were pending, the proceedings could not be continued and the assessment could not be made after the person's death. This lacuna was removed by the enactment of section 24B in the Income Tax Act, 1922, which made the legal representative liable to pay the tax which might have been assessed but not paid by the deceased person or which might be assessed after his death. The liability, though absolute, was, however, limited to the extent to which th....

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....h exceptional cases, however, the liability is limited to the payment of tax only and it is confined to the value of the asset so charged, disposed of, or parted with (section 159(4) of the Act). For the purpose of making an assessment of the income, of the deceased and levying any sum in the hands of the legal representative, any proceeding taken against the deceased before his death is deemed to have been taken against the legal representative and it may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased and all the provisions of the Act are to apply accordingly (section 159(2) of the Act). The legal representative, for the purposes of the Act, is deemed to be an assesse....