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Issues: Validity of assessment orders naming the assessee as "successor-in-interest" of deceased person, rejection of objections under section 9 of the Income Tax Act, applicability of section 24B of the Income Tax Act, jurisdiction under Article 226 of the Constitution, impact of delayed objection on relief, duty of taxpayer to point out revenue authorities' errors.
Validity of Assessment Orders: The High Court of Calcutta ruled on the validity of assessment orders that named the assessee as the "successor-in-interest" of a deceased person without specifying the executor, administrator, or legal representative. The court held that such assessment orders were invalid as they did not comply with the provisions of section 24B of the Income Tax Act. The court emphasized that an assessment cannot be made against a person without properly naming them, and in this case, the assessment orders were deemed to be flawed. Rejection of Objections under Section 9: The petitioner had raised objections under section 9 of the Income Tax Act, which were subsequently rejected. Despite the rejection of the objections, the court found that the grounds for rejection were not valid due to the improper manner in which the assessment orders were issued. The court concluded that the rejection of the objections under section 9 was not justified given the deficiencies in the assessment process. Applicability of Section 24B of the Income Tax Act: The judgment highlighted the importance of complying with section 24B of the Income Tax Act, which requires proper identification of the assessee in assessment orders. By failing to name the assessee correctly and only referring to them as the "successor-in-interest," the assessment orders were found to be in violation of this provision, leading to their invalidation. Jurisdiction under Article 226 of the Constitution: The court addressed the jurisdictional aspect of the case under Article 226 of the Constitution, emphasizing that the petitioner had the right to seek relief through this constitutional provision. The court rejected arguments that the petitioner's delayed objection barred them from relief, asserting that the taxpayer is not obligated to point out revenue authorities' errors within a specific timeframe. Impact of Delayed Objection on Relief: The judgment discussed the impact of delayed objections on seeking relief, with the respondent arguing that the petitioner's failure to object in a timely manner precluded them from relief due to limitation constraints. However, the court disagreed, stating that the taxpayer should not be required to assist revenue authorities in identifying errors in a timely manner, especially when the assessment was not made against the correct person. Duty of Taxpayer to Point Out Revenue Authorities' Errors: The court concluded that the taxpayer is not obligated to proactively point out errors made by revenue authorities, especially when the assessment is not conducted in accordance with the law. The judgment emphasized that taxation should strictly adhere to legal requirements, and taxpayers should not be burdened with the responsibility of identifying revenue authorities' mistakes within a limited timeframe. In conclusion, the High Court of Calcutta ruled in favor of the petitioner, quashing the invalid assessment orders and certificate proceedings based on the improper naming of the assessee. The court held that the assessment orders and certificate proceedings were not valid and ordered the refund of the security furnished by the petitioner.
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