TMI Blog1977 (3) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... B. N. Singh who died on April 16, 1967. The relevant assessment years are 1965-66, 1966-67 and 1967-68. The return for the assessment year 1965-66 was filed on March 17, 1970, showing a net income of Rs. 1,90,178. The Income-tax Officer issued notice under section 143(2) and assessed the total income at Rs. 4,09,773. The return for the assessment year 1966-67 was filed on November 12, 1970, showing an income of Rs. 92,646. The Income-tax Officer served notices under sections 143(2) and 142(1) of the Act, and, after hearing the authorised representative of the assessee, assessed the total income at Rs. 1,18,386. For the assessment year 1967-68 the return of income was filed on October 27, 1971, showing a loss of Rs. 3,702. The Income-tax Officer, after hearing the authorised representative of the assessee, assessed the total income at Rs. 73,490. From the assessment orders in all the three assessment years, it appears that ten persons were described as legal representatives of late B. N. Singh. The status of the assessee was shown as individual. Against the assessment orders of the Income-tax Officer the assessee appealed before the Appellate Assistant Commissioner. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t an irregularity for which the Appellate Assistant Commissioner was justified in setting aside the assessments and that it was not a case fit for cancellation of the assessments. On the above facts the above-mentioned question of law has been referred. The point that arises for consideration is whether, on the facts and in the circumstances of the case, the Appellate Assistant Commissioner was required by law to annul the assessments in question and that he committed an illegality in setting aside the assessments and directing reassessments inasmuch as, in the meantime, the bar of limitation came in. The assessee, B. N. Singh, died on April 16, 1967, and the fact of his death and the names of his legal representatives were intimated to the Income-tax Officer shortly after his death. It is a finding of fact that all the legal representatives were not brought on record and that they were not served with necessary notices before completion of the assessments and that notice was served only on one of the legal representatives, namely, Jaiprakash Singh. Daring his lifetime the assessee, B. N. Singh, did not file his return for the assessment year 1965-66. The question of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by whom any tax or any other sum of money is payable under this Act, and includes-- (a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person ; (b) every person who is deemed to be an assessee under any provision of this Act ; (c) every person who is deemed to be an assessee in default under any provision of this Act. " Section 2(29) of the Act defines " legal representative " as under " 2. (29) 'legal representative' has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908). " Section 2(11) of the Code of Civil Procedure defines " legal representative " as follows : " 2. (11) 'legal representative' means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee, B. N. Singh or that he represented all the legal representatives of late B. N. Singh. On this point the Tribunal has found as follows : " We have already pointed out above that the assessment order has been passed against all the 10 legal representatives of the deceased, Shri B. N. Singh, and the notice under section 143(2) was served only against Shri Jaiprakash Singh and the notices under section 143(2) were not issued against the other nine legal representatives. " The original assessee is B. N. Singh. When he died, his estate became subject to tax under the Act through his legal representative and legal representative means, as we have already noticed, a person who in law represents the estate of the deceased person. In the instant case, ten persons represent the estate of the deceased assessee, B. N. Singh. That being the position, serving of notice under section 143(2) of the Act on one of the legal representatives is not service of notice on the legal representatives representing the estate of late B. N. Singh and that being so, the assessments are bad in law and the Appellate Assistant Commissioner has set aside these assessments. But the Appellate Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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