TMI Blog2004 (1) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... asad Bhatia, Laxmi Narain Bhatia and Smt. Leela Devi. One Shri Mangi Lal Bhatia expired on 23rd April, 1989 and there were seven legal heirs of the deceased which are given as under: 1. Smt. Leela Devi Wife 2. Shri Badri Prasad Bhatia Son 3. Shri Lalit Bhatia Son 4. Smt. Laxmi Devi Daughter 5. Smt. Savitri Devi Daughter 6. Smt. Durga Devi Daughter 7. Smt. Sharda Devi Daughter 3. After the notices were sent under s. 148 of the IT Act, 1961 (hereinafter referred to as the Act), various additions were made. This appellant has raised a legal objection to the validity of impugned assessment by stating that the notice under s. 148 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Badri Prasad Bhatia during the assessment proceedings for the issuance of notices to each and every legal heir separately. So, the learned Departmental Representative has justified the assessment proceedings carried out under s. 148 of the Act. 6. The learned Departmental Representative has heavily relied on the Hon ble Supreme Court decision in the case of CIT vs. Jai Prakash Singh (1996) 132 CTR (SC) 262 : (1996) 219 ITR 737 (SC) in which it was held that if the return was filed voluntarily by one out of 10 legal heirs disclosing entire income and the legal heirs complied with the notices under ss. 142(1) and 143(2) and thereafter assessment was completed and in case the legal heirs raising the objection for the first time in appeal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the appellant, the jurisdiction to assess the deceased was created by issue of notice under s. 148 of the Act. The Hon ble Supreme Court at p. 744 has approved the observation made in Chatturam Ors. vs. CIT (1947) 15 ITR 302 (FC) as under: "The income-tax assessment proceedings commence with the issue of a notice. The issue or receipt of a notice is not, however, the foundation of the jurisdiction of the ITO to make the assessment or of the liability of the assessee to pay the tax. It may be urged that the issue and service of a notice under s. 22(1) or (2) may affect the liability under the penal clauses which provide for failure to act as required by the notice. The jurisdiction to assess and the liability to pay the tax, ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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