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TMI Blog1980 (5) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... 9th Nov., 1973 the ITO issued notices addressed to late Shankar Lal Omar though the legal representatives Kalawati Devi, Sheo Nath, Vishwa Nath and Ram Gopal in forming them that he had reasons to believe that their income chargeable to tax for the asst. yrs. 1965-66 to 1969-70 had escaped assessment and called upon them to file revised returns of their income in prescribed form for purposes of reassessment. Sheo Nath then filed fresh returns for various years in accordance with the settlement that had been arrived at between the parties. The ITO accepted those returns and vide his order dt. 20th Dec., 1973 he assessed the taxable income of late Shanker Lal Omar for various assessment years thus : 1965-66 ₹ 60,000 1966-67 ₹ 60,000 1967-68 ₹ 60,000 1968-69 ₹ 80,000 1969-70 ₹ 6,000 3. At the same time, the ITO also directed that notices for levy of penalty under ss. 274/271 (1)(a), 273 (b) and 271 (1)(c) of the IT Act be also issued to the assessees. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. (2) For the purpose of making an assessment (including an assessment, reassessment or recomputation under s. 147) of the income of the deceased and for the purpose of levying any sum on the hands of the legal representative. In accordance with the provisions of sub-s. (1) : (a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may, be continued against 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. 7. In view of the aforesaid provision, it is clear that the ITO was fully competent to even after the death of Shanker Lal O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who were being sought to be proceeded with in such capacity in respect of assessment of the deceased. 9. In Sewa Lal Daga vs. CIT (1965) 65 ITR 406(Cal), the original assessee was Chandra Bhan Johur Mall, in the status of an individual. In the relevant notice the assessee was described as Chandra Bhan Johur Mall (Karta Sewa Lall Daga)'. In that notice not only the original assessee, namely, Chandra Bhan Johur Mall (individual) had been misderscribed the notice also did not indicate that it was being issued to Sewa Lal Daga as the legal representative of deceased Chandr Bhan Johur Mall. 10. The facts of the two cases, cited by the counsel for the petitioner, are quite different form the facts of the case before us. As already explained, the notices issued in the instant case clearly indicated that they were meant for legal representatives of the deceased Shanker Lal Omar and that they were being required to answer the notices in such capacity. 11. We are, therefore of opinion that initiation of the proceedings is not vitiated because of the form in which the notices issued under s. 148 of the IT Act were addressed to the petitioner and other legal representatives of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent arrived at between Sheo Noath and the Department is neither binding nor can it be enforced against the petitioner. 14. We are unable to accept this submission. After the petitioner alongwith her three sons jointly made the application for settlement, it was for her and her three sons to have pursued the matter before the CIT. The CIT was not bound to issue notices to each of the applicants requesting them to appear before him and to settle the manner in which the assets discovered in the raid were to be death with. The fact that it was Sheo Nath alone who attended the office of the CIT itself leads to an inference that he was doing so with the consent of an for and on behalf of all the applicants. If it had not been so, the petitioner and her other sons would themselves have taken independent steps to appear before the CIT and would have pursued the matter themselves. In the circumstances, we have no doubt that Sheo Nath had, during the settlement proceedings, been and for an on behalf of petitioner as well and that the settlement arrived at between him and the Department is binding on the petitioner also. Since in these proceedings Sheo Nath was acting for and no behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee furnishing such return. He contended that it is only the person furnishing wrong particulars in the return, to explain the circumstances in which he furnished particular, The legal representatives are not expected to offer any explanation. 18. In support of his submission he relied upon a decision of this Court (AP-Sic) in the case of Smt. Yawarunnissa Begum vs. WTO (supra) wherein it has been held that penalty for furnishing wrong return in WT proceedings cannot be imposed upon the legal representatives to the deceased assessee. 19. It is significant to note that like the provisions contained in the WT Act, s. 24B of the IT Act, 1922 imposed a liability on the legal representatives only in respect of the tax payable by the deceased and not in respect of penalty or any other sum. However, s. 159 (1) of the IT Act which runs thus : Where a person died, his legal representative shall be liable to pay any sum which deceased would have been liable to pay if he had not died in the like manner and to the same extent as the deceased. clearly makes the legal representatives liable not only for the tax payable by the deceased assessee but also for all other sums w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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