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TMI Blog2016 (2) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... essment for Assessment Year (AY) 2008-09. 3. The above notice was returned unserved to the Department with the postal authorities endorsing on it the remarks "Addressee expired". That was a correct statement by the postal authority since indeed Mr. Inder Pal Singh Walia had expired on 14th March 2015. In other words, the notice dated 27th March 2015 had been addressed to a dead person. 4. The ITO, obviously unmindful of the requirement of law as far as Section 147 of the Act was concerned, issued a letter dated 15th June 2015 to the Petitioner as under: "Sir, Sub: Notice u/s 148 of the Income Tax Act, 1961 in the case of Sh. Inder Pal Singh Walia PAN - AAKPW8463F for the AY 2008-09 - reg. Kindly refer to the subject mentioned above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a strange stand to take since the death certificate of Shri Inder Pal Singh Walia confirming the date of his death as 14th March 2015 is on record. With the Department having not been able to counter this basic fact, the stand taken by it that the notice was not issued to a dead person on 27th March 2015 was plainly untenable. 7. Another stand taken in the letter dated 18th July 2015 is treating the endorsement made by the postal authority ( 'addressee expired') as a refusal by the family members of the Assessee to accept the notice. This was again plainly erroneous. The notices were not addressed to the family members. Therefor, there was no occasion for them to refuse such notice. The postal authority had correctly noted that the perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal representative from the stage at which it stood on the date of the death of the deceased; (b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and (c) all the provisions of this Act shall apply accordingly. (3) The legal representative of the deceased shall, for the purposes of this Act, be deemed to be an assessee. (4) Every legal representative shall be personally liable for any tax payable by him in his capacity as legal representative if, while his liability for tax remains undischarged, he creates a charge on or disposes of or parts with any assets of the estate of the deceased, which are in, or may come into, his possession, but such li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, it could have done so prior to 31st March 2015 by issuing a notice to the LRs of the deceased. Beyond that date it could not have proceeded in the matter even by issuing notice to the LRs of the Assessee. 13. Learned counsel for the Revenue sought to place reliance on the decision of the Supreme Court in Commissioner of Income Tax, Shillong v. Jai Prakash Singh (1996) 3 SCC 525 in support of his contention that the ITO was justified in initiating proceeding under Section 147 of the Act even against the Petitioner who admittedly was the LR of the deceased Assessee in this case. 14. A perusal of the said judgment reveals that it is clearly distinguishable on facts. Para 2 of the said decision shows that the son of the deceased Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. On the other hand, we have a decision of this Court in Braham Prakash v. Income-Tax Officer (2005) 275 ITR 242 which in similar circumstances has held that "notice could have been served upon a deceased Assessee". Even in that case there was nothing on record to show that notice under Section 148 of the Act was served on the LR of the deceased within the time prescribed. 18. Consequently, the Court has no hesitation in holding that the actions of the Revenue in this case in persisting with the proceedings under Section 147/148 of the Act against the Petitioner were wholly misconceived both on facts as well as on merits. Accordingly, the impugned notice dated 27th March 2015 and all proceedings consequent thereto are hereby quashed. 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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