AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 163
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.... the penalty, though your Appellant had disclosed the true facts before him. 2. The learned assessing officer levying the penalty failed to appreciate that the penalty order was passed on the deceased person and accordingly invalid and liable to be annulled. 3. The learned assessing officer levying the penalty ought to have appreciated that the legal representative had entered the record through the Letter of Indemnity 01.10.2021 and consequently the penalty order passed in the name of deceased is opposed to law and thus liable to be cancelled. 4. Without prejudice, the learned assessing officer levying penalty ought to have appreciated that the provisions of Sec. 269SS of the Act were not applicable to the case o....
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....enalty. 12. The learned assessing officer failed to consider the fact, that the Appellant disclosed all facts before completion of assessment. 13. In the instant case before your Hon'ble Appellate Authority brought to your good office kindly notice that the Assessee has been demised during the proceedings of the assessment and by virtue of law, one of his Sons became a Legal Representative in this case and prayed for your Honour that levying penalty is in violation of the one of the fundamental principles of the constitution of India under Natural Justice and opportunity of being heard not granted. Since, the Assessee had declared total consideration received as per sale deed and bank statements and TDS has be, covered....
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....r the above and other grounds that may be urged at the time of hearing, the appellant prays that the appeal may be allowed and justice rendered." 3. The brief facts of the case are as follows: The assessee has sold a property for Rs.2,14,22,160 and received Rs.2,12,07,936 from the purchaser after deduction of TDS at 1% as per the provisions of section 194-IA of the Act. Out of the consideration received of Rs.2,12,07,936, Rs.2 crore was received by way of RTGS and balance Rs.12,07,936 was accepted in cash. Taking note of this cash transaction in respect of the transfer of the property, the Assessing Officer invoked the provisions of section 269SS of the Act. The A.O. after affording opportunity of being heard to the assessee, imposed ....
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....order imposing penalty u/s 271D of the Act was passed subsequently on 28.01.2022. Therefore, penalty order was passed on the deceased person. The CIT(A) upheld the penalty order by holding that the penalty proceedings were initiated when the assessee was alive and the objections to the notice for the penalty initiated was filed by the assessee himself. 8. As per section 159(2) of the Act, mere initiation of penalty proceeding correctly is not sufficient, but it ought to have been completed also in accordance with the said provisions. In other words, any proceedings taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the ....
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....023] 149 taxmann.com 225 (Jharkhand) held that: Where during original assessment proceeding itself, original assessee died and AO was well-informed of same, reopening notice issued in name of deceased assessee on his PAN and not in name of his legal representative was held to be illegal and all consequential orders passed pursuant to notice would be non est and was to be quashed (v) The Hon'ble Delhi High Court in the case of Vikram Bhatnagar v. ACIT [2023] 147 taxmann.com 254 (Delhi) held that: Where it was duly disclosed in return that it was filed by legal representative of deceased assessee, jurisdictional notice issued against deceased assessee and assessment order passed against dead person on his PAN withou....
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.... of its findings on those facts, but upon their nature, and it is determinable at the commencement, not at the conclusion of the enquiry. A study of section 159 would make it clear that only those proceedings for making assessment or levying any sum may be taken against the deceased, so that they may be continued after his death, which have been taken in his lifetime. In his lifetime such proceedings would necessarily be taken against and in the name of the deceased. However, if the deceased has died before any such proceedings could have been taken against him, the proceedings may be taken against the legal representative of the deceased under the provisions of sub-clause (b) of sub-section (2) of section 159. It is now clear that assessme....