TaxTMI 
TaxTMI 
2018 (12) TMI 697
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....Act") to the deceased assessee, late Smt. Rukmani Sehgal (hereafter called the "deceased assessee") and to prohibit the respondent Assessing Officer (hereafter called the "AO") from conducting proceeding for re-assessment in any manner or take any consequential action under the Act for the assessment year (AY) 2010-11. 2. The undisputed facts are that the deceased assessee had filed income tax returns and continued to do so, till her death. The return for AY 2010-2011 was processed, in a routine manner and the deceased assessee was intimated about it. On 17.01.2015, the said assessee died. The impugned reassessment notice was issued under Section 148 of the Act to the said deceased; the petitioner, a legal representative of the deceased,....
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....st submission, the petitioner cites the Division Bench of this court, in Vipin Walia Vs. ITO (2016) 382 ITR 19, which was followed by the High Court of Gujarat at Ahmadabad in the case of Rasid Lala Vs. ITO [Special Leave Application No.18987 of 2016, decided on 29.11.2016]. 5. The revenue resists the petition; its counsel relies on Sky Light Hospitality LLP v. AC (CT) (2018) 90 Taxmann.Com and submits that the error, in issuing the notice to a non-existent person or entity is capable of correction and by reason of Section 292B of the Act, the notice is not invalid. He also relied on Pankajbhai Rameshbhai Zalavadia vs Jethabhai Kalabhai Zalavadiya (Deceased) through LRs & Ors (2017) 9 SCC 700 to contend that any assessment made in the pr....
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.... parts with any assets of the estate of the deceased, which are in, or may 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, 162 and 167 shall, so far as may be and to the extent to which they are not inconsistent 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 (5), be limited to the extent to which the estate is capable of meeting the liability." 7. After noticing the facts of the case, the Division Bench, in Vipin Walia (supra) (where a....
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....revenue's argument that the "defect" was curable, in regard to the issuance of notice, to a deceased individual, is, in the opinion of this court, untenable. The phraseology of Section 292BB precludes the contention. That provision reads as follows: "292BB. Notice deemed to be valid in certain circumstances.-Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice ....
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....ort of the revenue to impose the tax burden upon a legal representative. 11. As far as the second argument, with regard to the clarification is concerned, this court is unpersuaded by the revenue's argument. The petitioner's objection that the transaction with an entity attributed to the deceased was unsupported by the books furnished to the revenue, was straightaway rejected. However, the "reasons to believe" are premised upon such a transaction with one Varun Capital Services Ltd. (as is evident from the table at Appendix B to that document). After rejection, of the objection, which meant that according to the revenue, such a transaction was indeed recorded in the deceased's books, the revenue attempted to "correct" the "error" by chan....