TMI Blog2018 (12) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... ur opinion precludes its application, contrary to the revenue s argument. This court is of opinion that the absence of any provision in the Act, to fasten revenue liability upon a deceased individual, in the absence of pending or previously instituted proceeding which is really what the present case is all about, renders fatal the effort of the revenue to impose the tax burden upon a legal representative. After rejection, of the objection, which meant that according to the revenue, such a transaction was indeed recorded in the deceased s books, the revenue attempted to correct the error by changing the name of the entity (with whom the suspect transaction occurred). This court is of opinion that such correction is neither innocu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year (AY) 2010-11. 2. The undisputed facts are that the deceased assessee had filed income tax returns and continued to do so, till her death. The return for AY 2010-2011 was processed, in a routine manner and the deceased assessee was intimated about it. On 17.01.2015, the said assessee died. The impugned reassessment notice was issued under Section 148 of the Act to the said deceased; the petitioner, a legal representative of the deceased, Rajendra Kumar Sehgal (hereafter called the petitioner ) and he was intimated this fact; without prejudice. Thereafter, vide letter dated 15.05.2017, the petitioner also sought a copy of the reasons to believe . The revenue furnished the reasons to believe recorded on its file in supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The revenue resists the petition; its counsel relies on Sky Light Hospitality LLP v. AC (CT) (2018) 90 Taxmann.Com and submits that the error, in issuing the notice to a non-existent person or entity is capable of correction and by reason of Section 292B of the Act, the notice is not invalid. He also relied on Pankajbhai Rameshbhai Zalavadia vs Jethabhai Kalabhai Zalavadiya (Deceased) through LRs Ors (2017) 9 SCC 700 to contend that any assessment made in the present case cannot be treated as void. Analysis and Conclusions 6. The provision relevant to decide the first issue is Section 159 of the Act, which reads as follows: 159. (1) Where a person dies, his legal representative shall be liable to pay any sum which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall, so far as may be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation to a legal representative. (6) The liability of a legal representative under this section shall, subject to the provisions of sub-section (4) and sub- section (5), be limited to the extent to which the estate is capable of meeting the liability. 7. After noticing the facts of the case, the Division Bench, in Vipin Walia (supra) (where again the reassessment notice was issued in the name of the deceased and no notice was issued to the legal representative), held that: 11. Section 159 (2) of the Act makes a specific reference to a reassessment proceeding under Section 147 of the Act. While Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notice deemed to be valid in certain circumstances.- Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was- (a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner: Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity attributed to the deceased was unsupported by the books furnished to the revenue, was straightaway rejected. However, the reasons to believe are premised upon such a transaction with one Varun Capital Services Ltd. (as is evident from the table at Appendix B to that document). After rejection, of the objection, which meant that according to the revenue, such a transaction was indeed recorded in the deceased s books, the revenue attempted to correct the error by changing the name of the entity (with whom the suspect transaction occurred). This court is of opinion that such correction is neither innocuous nor innocent; it was clearly aimed at improving what was a fatally defective reasons to believe and mask the reality, to wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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