TMI Blog2010 (3) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... ce even after about 7 months of the death of the assessee, therefore, sub-section (2) of section 159 of the Act is not applicable to the present appeal. - since in the present case the proceedings were initiated after the death of the assessee, consequently, the AO was not justified in farming the assessments. - ITA Nos. 194 & 195/Ind/2005 - - - Dated:- 16-3-2010 - JOGINDER SINGH, JUDICIAL MEMBER J. AND V.K. GUPTA, ACCOUNTANT MEMBER J. Kailash Agrawal for the Appellant. Smt. Aparna Karan for the Respondent. ORDER PER JOGINDER SINGH, JM These two appeals by the assessee are directed against the separate orders of the Ld. Commissioner of Income Tax (Appeals), Indore dated 17.11.2004 relating to the Assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 132 of the Act on 13.9.1990 wherein certain loose papers and girvi books were seized. As per the revenue, on the basis of seized material, entire money lending business was not disclosed to the department. Originally, the assessment was framed on 31.3.1993 resulting into addition of Rs.2,94,086/-. The original assessment was set aside by the Id. CIT(A) vide order dated 11.3.1997. The first hearing was fixed on 10.3.1999. During the course of the search, certain loose papers relating to pawning were seized which were presumed to be pertained to the assessee. Even as per the Id. CIT(A), onus lies heavily on the assessee to explain the entries recorded in the seized books/papers found during course of search operation. We do not agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment orders were made mentioning names of all ten legal representatives as assessee. On appeal, J contended for the first time that inasmuch as all legal representatives of B were not given notice for assessment proceedings, the assessments made were illegal and void. This contention of the assessee was rejected by the AAC holding that completing assessment without serving notice on all legal representatives was only an irregularity. The tribunal affirmed the view. However, the Hon'ble High Court held that in the absence of notice to all representatives, assessment made upon them was a nullity and not merely irregularity, therefore, the direction of AAC was set aside. On a question whether it can be said that omission to serve or any defec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst 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 stage at which it stood on the date of the death of the deceased; (b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and (c) all the provisions of this Act shall apply accordingly. (3) The legal representative of the deceased shall, for the purposes of this Act, be deemed to be an assessee. (4) Every legal representative shall be personally liable for any tax payable by him in his capacity as legal representative if while his liability for tax remains undischarged, he creates a charge o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein search warrants were issued in the name of dead person. The search was held to be invalid and the assessment based on such search was also held to be invalid. While coming to this conclusion, the Hon'ble Court also considered the decision of the Hon'ble Apex Court in the case of Pratap Singh (Dr.) v. Director of Enforcement; 155 ITR 166 (SC) (para 4) and another decision in Puranmal v. Director of Inspection (Inv.) Income Tax; 93 ITR 505 (SC) (Para 4). It is pertinent to mention here that the Special Leave Petition filed by the department against the aforesaid decision, was also dismissed by Hon'ble Apex Court (2009) 313 ITR (St.) 29 - ED. The ratio laid down by the Chandigarh Bench of the Tribunal, in the case of Shri Sohanlal Goy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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