9911796707
|
Home
Issues:
1. Validity of the notice issued for the recovery of tax arrears from the legal representative of the deceased assessee. 2. Liability of legal representative to pay tax from the estate of the deceased. 3. Contention regarding the Department proceeding against the 1/4th share of the petitioner for the entire tax arrears. 4. Request for relief from liability and waiver of interest by the petitioner. Issue 1: Validity of the notice for tax arrears recovery The petitioner sought to quash a notice issued for the recovery of tax arrears from the estate of the deceased assessee. The petitioner argued that the notice was invalid as it was only sent to her without notifying the other legal representatives. The respondents contended that the notice was legal and valid as per the provisions of the Income-tax Act, 1961. They argued that proceedings can continue against legal representatives from the stage reached at the time of the deceased's death. The court held that the notice challenged was valid and dismissed the writ petition. Issue 2: Liability of legal representative to pay tax The petitioner's counsel argued that the petitioner, as a legal representative, should only be liable for the tax payable to the extent of the estate's value. However, the court held that the legal representative can be held liable for any portion of the deceased's assets for tax arrears recovery. Section 159 of the Income-tax Act, 1961, makes the legal representative personally liable to the extent of the asset value disposed of while the tax liability remains undischarged. Issue 3: Contention regarding proceeding against 1/4th share The petitioner contended that the Department cannot proceed against her 1/4th share for the entire tax arrears due from the deceased. The court rejected this argument, stating that the Department can proceed against any portion of the deceased's assets in the hands of legal representatives for tax arrears recovery. The court emphasized that the notice issued to the petitioner, as a legal representative, was valid. Issue 4: Relief from liability and waiver of interest The petitioner requested relief from liability and waiver of interest based on the will executed by her father, which entitles her to 1/4th share of the properties. The court stated that it cannot issue directions to the Department but advised the petitioner to make a representation seeking relief. The competent authority was advised to consider the representation sympathetically and pass appropriate orders according to law. In conclusion, the court dismissed the writ petition, stating that the notice for tax arrears recovery was valid, and advised the petitioner to seek relief through a representation to the competent authority.
|
