TaxTMI 
TaxTMI 
TaxTMI 
2000 (7) TMI 209
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....993, and pertains to penalties levied under s. 271(1)(c) of the Act for the three years under consideration. The third is a lone appeal, i.e. ITA No. 5916/Bom/1995 directed against the order of the learned CIT(A) dt. 13th Jan., 1995, and pertains to the quantum of assessment for asst. yr. 1988-89. The final set is of three appeals, i.e. ITA Nos. 5958 to 5960/Bom/1996, and is directed against the combined order of the learned CIT(A) dt. 23rd May, 1996, for the three years concerned. This set of appeals is against the rejection of assessee's application under s. 154 requesting the AO to implead all the legal heirs of the deceased assessee. 2. The assessee, late Shri G.S. Kamath was running a restaurant called Gokul Refreshments till his deat....
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....ng the above reasons, AO mentioned as follows: "In the light of the above, you may rethink the entire matter and show me the reasons why your application for rectification under s. 154 should not be rejected. You may give your written reply by 26th April, 1995 and if you wish so you can personally or through any authorized representative duly authorised by all the legal heirs may have a personal hearing before me on 26th April, 1995 at 3.00 p.m." In response to the above, Shri Ganesh Kamath submitted a reply dt. 22nd April, 1995, reiterating the plea that all the orders be passed afresh after implicating all the legal heirs. The successor officer finally rejected the application by his letter dt. 24th Nov., 1995, by referring to the lette....
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....e the AO had not applied his mind to the reply given by the assessee and since there was no speaking order, it had no force at all. Moreover, penalties were also levied without impleading all the legal heirs, which under any circumstances could not have been done without affording an opportunity of being heard under s. 274. Reliance was placed on the decision of the Supreme Court in the case of Jai Prakash Singh vs. CIT (1996) 132 CTR (SC) 262 : (1996) 219 ITR 737 (SC) as per which it was held that non-issuance of notices to all the legal heirs would not render an assessment to be null and void, at best it was an irregularity which could be cured and hence Tribunal was justified in remanding back the matter. It was, therefore, prayed by Mr.....
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....aged lady who did not understand the legal implications and hence the names of all the legal heirs were not immediately provided. Thus, considering the facts and circumstances of the case, as well as keeping in view the decision of the Supreme Court in the case of Jai Prakash Singh, it was vehemently pleaded that the assessments should be done afresh after implicating all the legal heirs. 10. We have given our careful consideration to the rival contentions and the material on record. First we would like to deal with the two decisions of the Gujarat High Court relied upon by Mr. Sanjay Singh. In the case of H.H. Maharani Vijaykunverba Saheb vs. CIT, the plea of the assessee was that the assessment should be held invalid, which the Court ref....
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....on by Mr. Sanjay Singh do not, in our opinion, fit within the factual frame work of the present case. 11. No doubt, if fresh assessment is directed, the entire innings will have to be played again. But given the nature of irregularity, we are inclined to so direct. It cannot be gainsaid that under s. 159, the liability of the legal representative is personal. Here there are four legal representatives. For whatever reason one or more of the representatives may totally deny their liability in representative capacity. Hence, before saddling them with any liability, it is incumbent that reasonable opportunity of being heard is given to each of them unless one representative is authorised by the others to act on their behalf. It is obligatory a....