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TMI Blog2024 (5) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 2015-16. The assessee has assailed the impugned order on the following grounds of appeal: "1. On the facts and circumstances of the case & in law, the Id CIT(A) has erred in sustaining the addition of Rs. 8,61,760/- on the count of long term capital gain on sale of equity shares by denying exemption u/s. 10(38) and applying sec. 68 treating it as bogus transaction; addition made is unjustified and is liable to be deleted. 2. The appellant craves leave, to add urge, alter, modify or withdraw any grounds before or at the time of hearing." Also, the assessee has raised an additional ground of appeal which reads as under: "1. On the facts and circumstances of the case and in law, assessment made u/s. 147 on 28-3-22 is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings, the appellant did not produce any documentary evidence or submission in support of his ground of appeal. In fact, as mentioned hereinabove, he did not make any compliance whatsoever till date. It is therefore seen that he is not interested in pursuing the ground of appeal raised by him. Nothing has been brought on record to controvert the detailed findings of the AO as mentioned in the Assessment Order. The AO has based his findings on the factual matrix of the case, relying upon the findings of Investigation Wing of the Department, SEBI and various case laws. The scrip traded in by the appellant was of an entity held to be a penny stock company providing accommodation entries. The appellant has not brought anything on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E-acknowledgement of the aforesaid reply and the death certificate that were uploaded on e-portal of the department on 15.03.2022, Page 18 to 20 of APB. Carrying his contention further, the Ld. AR submitted that as no order can be passed against a dead person, therefore, the order passed by the A.O u/s. 147 r.w.s. 144B of the Act dated 28.03.2022 without impleading the legal heir of the deceased assessee despite having been intimated of the aforesaid fact, thus, could not be sustained and was liable to be vacated. The Ld. AR in support of his aforesaid contention had relied on the following judicial pronouncements: (i) Raja Kumari Vs. Income Tax Officer, Writ Petn. Nos. 29157 & 29162 of 2023, dated 10.10.2023; (ii) Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired failed to implead his legal heir and framed the assessment in the name of the deceased assessee, viz. Shri Rajendra Kumar Patel. 10. As stated by the Ld. AR, and rightly so, 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. My aforesaid view is supported by the mandate of law as per section 159(2) which reads as under: "159. (1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, 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." 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. The aforesaid view is supported by the judgment of the Hon'ble High Court of Madhya Pradesh in the case of Commissioner of Income Tax Vs. Dalumal Shyamumal (2005) 276 ITR 62 (MP). The Hon'ble High Court had observed that as th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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