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Appeals by Revenue against Commissioner's orders for assessment years 1994-95 and 1995-96 regarding cancellation of assessment made in the status of representative assessee. Analysis: The Revenue appealed against the Commissioner's decision to cancel the assessment made in the status of representative assessee for the years 1994-95 and 1995-96. The main contention was whether the assessee could be considered a legal representative under section 163 of the Income-tax Act. The Revenue argued that the assessee should be treated as a representative assessee of the legal heirs of the deceased, as the assessee had a power of attorney from the deceased for a land transaction. However, the assessee's counsel contended that the Assessing Officer did not specify the legal heirs' names and did not establish any business connection between the assessee and the legal heirs. The counsel highlighted that the power of attorney was solely for the land transaction and did not imply a business connection with the legal heirs. The definition of a representative assessee under sections 160(1) and 163(1) of the Income-tax Act was crucial in determining the case. Section 160(1) defines a representative assessee in various scenarios, including in the case of a non-resident's income or a minor's income. Section 163(1) elaborates on who may be regarded as an agent for a non-resident, including persons with business connections or trustees of non-residents. The law requires that no person can be treated as an agent of a non-resident without being given an opportunity to be heard by the Assessing Officer regarding their liability as an agent. The Assessing Officer failed to specify the applicable section or clause under which the assessee was treated as an agent of the legal representative. The Tribunal noted that the connection between the assessee and the deceased was limited to a land transaction and did not establish a business connection with the legal heirs. The Commissioner of Income-tax (Appeals) also found that the provisions of sections 160(1)(i) and 163(1) did not apply in this case as the deceased was a resident at the time of the transaction, and the power of attorney was given after her death to complete the original transaction. After reviewing the arguments and facts, the Tribunal upheld the Commissioner's decision, dismissing the Revenue's appeals. The Tribunal concurred with the Commissioner's findings that the provisions of sections 160(1)(i) and 163(1) did not apply in this case, and the assessee could not be treated as a representative assessee of the legal representatives of the deceased.
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