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2024 (5) TMI 534 - AT - Income TaxValidity of order passed u/s. 147 against deceased assessee - responsibility of legal representative u/s 159 - Addition u/s 68 - bogus LTCG - HELD THAT - As per the settled principle of law no order can be passed against a dead person and thus any proceedings taken against the deceased assessee shall be continued against the legal representative from the stage at which it stood on the date of the death of the deceased. A.O despite having been intimated about the fact that the assessee had expired failed to implead his legal heir and framed the assessment in the name of the deceased assessee. In a case where an assessee dies pending any assessment proceedings the provisions of Section 159 of the Act get attracted. Accordingly it is incumbent on the A.O to ensure compliance with sub-section (2) of Section 159 before any order is passed. As decided in DALUMAL SHYAMUMAL 2004 (11) TMI 57 - MADHYA PRADESH HIGH COURT as the A.O had framed the assessment in the name of the assessee (since deceased) therefore assessment so framed was a nullity. However once the assessment order was held to be nullity then the Tribunal should have given a consequential direction as contemplated u/s. 159 of the Act to the A.O so that proper assessment order could be passed. Thus we hold the order passed by the A.O u/s. 147 r.w.s. 144B as nullity and remand the matter to the file of the A.O for ensuring compliance with Section 159(2) for passing appropriate orders of assessment after validly putting to notice the legal representative/representatives of the deceased assessee.
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