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2025 (1) TMI 1300

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..... 7/2024 having been favoured, relief has been accorded to her as under: "13. Accordingly, by setting aside the notice issued under Section 148 of the Act and the orders pursuant there to including the order at Annexure-'A2', demand notice at Annexure-'A3' and penalty notices at Annexures-'G', 'H' and 'J' are set aside. The consequential proceedings if any, raising demand are also set aside". 2. FOUNDATIONAL FACTS IN BRIEF: 2.1 The Assessing Authority received information that the Assessee Smt. Ramanatha Gurulakshmi had huge cash deposits and that during the Assessment Year 2016- 17 she had made transactions pertaining to immovable properties and further that she had not filed her Returns of Income declaring interest from the deposits a .....

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..... d granted relief to him. Aggrieved thereby, this Intra-Court Appeal is preferred. The Writ Petitioner who happens to be the Respondent in this Appeal is on Caveat through his counsel, who opposes the Appeal making submission in justification of the reasons of the learned Single Judge. 3. Having heard the learned counsel appearing for the parties and having perused the Appeal papers, we decline indulgence in the matter broadly agreeing with the learned Single Judge that the Assessment Order and other proceedings taken up against the deceased are all null & void. The proceedings initiated against the Assessee by issuing notice after his demise cannot be continued against his/her legal representative. Had the proceedings been initiated agains .....

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..... 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 on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such liability shall be limited to the value of the asset so charged, disposed of or parted with. (5) The provisions of sub-section (2) of section 161, section 162 and section 167 shall, so far as may be and to the extent to which they are not inconsistent with the provisions .....

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..... public policy needs to be enacted and the text of language to be employed for such enactment. English is a foreign language, is a poor ground of rebuttal, especially when a plethora of legislations are in that language, although along with Hindi. 3.3 The second contention of the learned Panel Counsel that liberty ought to have been reserved to the Revenue for initiating fresh proceedings against the Legal Representatives of the Assessee, once proceedings taken up against the deceased Assessee are set at naught, again does not impress us even in the least. This contention is structured on a premise that the Legal Representatives i.e., persons who hold estate of the deceased Assessee in their hands are under a legal obligation to inform the .....

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..... rved on him, the AO should first issue the notice under s 142 (1 )(i) or 148 to the legal representative of the deceased and then proceed to assess the income of the deceased in the hands of the representative as if the representative were the assessee. In other words, notice cannot be issued in the name of a dead person and such notice would be null and void, and proceedings cannot thereafter be continued against the legal representatives. Notice under the relevant sections should be, issued qua the legal representative within limitation period prescribed under the relevant section under which notice is issued." 3.4 Learned Single Judge at Paragraph Nos. 9, 10 & 11 of the impugned judgment, has rightly observed as under: "In light of t .....

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