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Issues:
Initiation of assessment proceedings under section 147 based on notice to a deceased person's attorney, Assessment made in the name of the attorney as legal heir, Validity of notice under section 148 to the attorney, Legal representative's liability for deceased's tax, Definition of legal representative under section 159 of the Income Tax Act and section 2(11) of the Civil Procedure Code. Initiation of Assessment Proceedings under Section 147: The appellant challenged the initiation of assessment proceedings under section 147, arguing that issuing a notice under section 148 to the deceased person's attorney was illegal and did not confer lawful jurisdiction on the Assessing Officer (AO). The appellant contended that after the death of the deceased, there could be no valid attorney to act on his behalf. The CIT(A) rejected this argument, stating that the attorney, being a legal representative of the deceased, could receive the notice and file returns on behalf of the deceased. The CIT(A) held that the proceedings initiated by issuing notices to the attorney were valid. Assessment Made in the Name of the Attorney as Legal Heir: The appellant further contended that assessment framed in the name of the attorney as a legal heir was unlawful. The CIT(A) disagreed, stating that the attorney, as a legal representative, had the authority to act on behalf of the deceased and validate the proceedings. The CIT(A) held that the technical error in describing the attorney in the notices did not invalidate the assessment, as the attorney had consented to the process and participated in the proceedings. Validity of Notice under Section 148 to the Attorney: The appellant argued that the notice under section 148 to the attorney was invalid as the attorney could not represent the deceased's estate without proper authorization from all legal heirs. The tribunal agreed, citing the clear provisions of section 159 of the Income Tax Act and section 2(11) of the Civil Procedure Code. The tribunal held that the attorney could not be considered a legal representative and therefore, the assessment based on the illegal notice was invalid. Legal Representative's Liability for Deceased's Tax: Section 159 of the Income Tax Act specifies the liability of a legal representative to pay any tax owed by the deceased. The tribunal emphasized that the legal representative must be duly authorized and meet the criteria outlined in the law. In this case, the tribunal found that the attorney did not qualify as a legal representative and therefore, could not be held liable for the deceased's tax. Definition of Legal Representative: The tribunal analyzed the definition of a legal representative under section 159 of the Income Tax Act and section 2(11) of the Civil Procedure Code. It concluded that the attorney did not meet the legal criteria to be considered a legal representative of the deceased. Therefore, the assessment based on the attorney's involvement was deemed invalid. In conclusion, the tribunal accepted the appellant's arguments, quashing the assessments framed by the AO and confirmed by the CIT(A) due to the invalid initiation of proceedings based on the notice to the deceased person's attorney. The tribunal ruled in favor of the appellant, dismissing other grounds raised in the appeal.
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