1987 (10) TMI 117 - AT - Income Tax

Summary

Issues:
1. Validity of assessment made on a deceased individual.
2. Whether the assessment should be annulled or set aside for redone in accordance with law.
3. Legal implications of not impleading all legal representatives in assessment proceedings.

Analysis:
1. The appeal was filed by the widow of the deceased individual, challenging the assessment made under section 143(3) on the deceased. The contention was that since the individual had passed away before the assessment was completed, the assessment was a nullity and should be annulled. The CIT(A) acknowledged that the ITO was aware of the death of the individual before completing the assessment but decided to set aside the assessment to be redone in accordance with the law.

2. The appellant argued that the assessment should have been quashed as it was made on a deceased person. The Tribunal examined the timeline of events and actions taken by the ITO. It was noted that the legal heir of the deceased had entered appearance, provided a power of attorney, and participated in the proceedings. The Tribunal deliberated on whether the assessment should be set aside or quashed based on the legal precedents cited by both parties.

3. The Tribunal considered the legal precedents cited by both parties, particularly the judgments of various High Courts. The appellant relied on the Gauhati High Court decision emphasizing the importance of impleading all legal representatives in assessment proceedings. However, the Tribunal also took into account decisions from the Gujarat and Delhi High Courts, which supported the view that setting aside the assessment to bring on record all legal representatives for a proper assessment was a valid approach. The Tribunal concluded that the order of the CIT(A) to set aside the assessment and include all legal representatives for a new assessment was appropriate.

In conclusion, the Tribunal dismissed the appeal, upholding the decision of the CIT(A) to set aside the assessment and order for a reassessment involving all legal representatives.