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TMI Blog2025 (1) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... that is not the factual position here. Therefore, the order of the learned Single Judge cannot be faltered in quashing what were challenged before him. Second contention of the learned Panel Counsel that liberty ought to have been reserved to the Revenue for initiating fresh proceedings against the Legal Representatives of the Assessee, once proceedings taken up against the deceased Assessee are set at naught, again does not impress us even in the least. This contention is structured on a premise that the Legal Representatives i.e., persons who hold estate of the deceased Assessee in their hands are under a legal obligation to inform the Revenue as to the death of the Assessee. To support such a premise, no provision of law in general and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equential proceedings if any, raising demand are also set aside". 2. FOUNDATIONAL FACTS IN BRIEF: 2.1 The Assessing Authority received information that the Assessee Smt. Ramanatha Gurulakshmi had huge cash deposits and that during the Assessment Year 2016- 17 she had made transactions pertaining to immovable properties and further that she had not filed her Returns of Income declaring interest from the deposits and capital gains. A notice dated 31.01.2023 was issued to her u/s. 148A(b) of the Income Tax Act, 1961 by Speed Post whereby she was asked to show as to why notice u/s.148 should not be issued. The Speed Post came to be served on 03.02.2023 and service is vouched by postal records. Second notice was sent on 15.02.2023. 2.2 As n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the parties and having perused the Appeal papers, we decline indulgence in the matter broadly agreeing with the learned Single Judge that the Assessment Order and other proceedings taken up against the deceased are all null & void. The proceedings initiated against the Assessee by issuing notice after his demise cannot be continued against his/her legal representative. Had the proceedings been initiated against the Assessee during his life time, they could be continued against the legal representatives of the deceased Assessee. However, that is not the factual position here. Therefore, the order of the learned Single Judge cannot be faltered in quashing what were challenged before him. 3.1 The strong reliance placed by the learned P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eates 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 liability shall be limited to the value of the asset so charged, disposed of or parted with. (5) The provisions of sub-section (2) of section 161, section 162 and section 167 shall, so far as may be and to the extent to which they are not inconsistent with the provisions of this section, apply in relation to a legal representative. (6) The liability of a legal representative under this section shall, subject to the provisions of sub-section (4) and sub-section (5), be limited to the extent to which the estate is capable of meeting the liability." 3.2 The above provisions are as clear as Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been reserved to the Revenue for initiating fresh proceedings against the Legal Representatives of the Assessee, once proceedings taken up against the deceased Assessee are set at naught, again does not impress us even in the least. This contention is structured on a premise that the Legal Representatives i.e., persons who hold estate of the deceased Assessee in their hands are under a legal obligation to inform the Revenue as to the death of the Assessee. To support such a premise, no provision of law in general and no section of 1961 Act in particular are brought to our notice. Clause (b) of Section 159 (2) enables proceedings being taken against Legal Representatives of the deceased, is true. However, that is subject to such proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d such notice would be null and void, and proceedings cannot thereafter be continued against the legal representatives. Notice under the relevant sections should be, issued qua the legal representative within limitation period prescribed under the relevant section under which notice is issued." 3.4 Learned Single Judge at Paragraph Nos. 9, 10 & 11 of the impugned judgment, has rightly observed as under: "In light of the above, question of continuing with fresh proceedings against the deceased which liberty is sought of by the learned counsel for the revenue would be permissible only if proceedings could have been taken against the deceased if he had survived. The present proceedings under Section 148 of the act are as regards the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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