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TMI Blog1986 (11) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ment the tax was determined at Rs. 1,900. The penalty proceedings under s. 17 of the GT Act were initiated by the ld. GTO and in reply, it was submitted on behalf of the assessee that no assessment order had been received and that the penalty proceedings be stayed till the service of the certified copy of the assessment order. The ld. GTO observed that it was not possible to stay the penalty proceedings and that the default had been committed by the assessee. He, thus considered himself satisfied that the assessee had without reasonable cause failed to furnish return within time and thus committed a default cognizable under s. 17(1)(a) of the Act. Thus, a penalty of Rs. 1,026 was imposed vide order dt. 28th March, 1986 framed under s. 17(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d facts. No notice was either issued by the ld. GTO or received by the assessee or for the matter the legal heir for filing the return of gift. In these circumstances it is, seen that the default was committed by the deceased. The legal heir only brought the default to an end. It is not the Revenue s case that any notice was at all defaulted by the legal heir. The penalty is seen to have been imposed in these circumstances. 7. On behalf of the Revenue mention was made of s. 19 of the GT Act, 1958. The said section deals with tax of the deceased person payable by the legal representative. In the present case before us, we are not concerned with the tax of the deceased person. In fact the issue at hand is the penalty imposed for late filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in response to notice issued by the Department, the deceased filed the return of net wealth and also paid the taxes due on the basis of the return. The ld. WTO levied penalty on the legal representative of the deceased for the belated filing of the return. The ld. First Appellate Authority cancelled the penalty on the ground that since the default were committed by the deceased the legal representative could not be penalised. The Tribunal confirmed the ld. AAC s finding and the Hon ble High Court subsequently held "Held, that the absence of a legal fiction as found in s. 24(B(2) of the Indian IT Act, 1922 would militate against the acceptance of the contention that the legal representative should be deemed to be the assessee in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative because a legal representative has not been made liable to be assessed to penalty. A notice to show cause cannot be issued to a legal representative firstly, because he has not been made liable to show any such cause, and in the next place, the legal representative cannot be said to have committed any default in cases where the deceased-assessee delayed filing of the return. Default was committed by the original assessee. The legal representative has not been made liable to be assessed for such a default of the original assessee." 12. A perusal of the above case clearly shows that their Lordship observed that penalty proceedings for late filing of the return commenced against the person who had filed the return could not validly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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