Notice For Reassessment in Name of Deceased Invalidates Assessment Notice For Reassessment in Name of Deceased Invalidates Assessment

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The Tax Publishers Notice For Reassessment in Name of Deceased Invalidates Assessment CA Manoj Gupta In many cases the Revenue issues reassessment notice in the name of deceased person. In such cases, the issue arises as to validity of such notice and consequent assessment. The High Courts so far have held that any such notice is invalid and consequent assessment is also not valid. The learned author discusses the issue. 1. Related provisions section 159 of the Act, reads as follows :-- '159. Legal representatives--(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 re-computation under Section 147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (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. (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 liability shall be limited to the value of the asset so charged, disposed of or parted with. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Notice For Reassessment in Name of Deceased Invalidates Assessment

CA Manoj Gupta

In many cases the Revenue issues reassessment notice in the name of deceased person. In such cases, the issue arises as to validity of such notice and consequent assessment. The High Courts so far have held that any such notice is invalid and consequent assessment is also not valid. The learned author discusses the issue.

1. Related provisions

section 159 of the Act, reads as follows :--

'159. Legal representatives--(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 re-computation under Section 147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (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

(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 liability shall be limited to the value of the asset so charged, disposed of or parted with.