THE COMMISSIONER OF I.T. ASR. vs. NARINDER KUMAR.

Income Tax Reference No.179 of 1999 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income Tax Reference No.179 of 1999

Date of Order: 07.11.2013 The Commissioner of Income Tax, Amritsar

...Appellant Versus Sh. Narinder Kumar, L/H of Sh. Roshan Lal C/o M/s Roshan Lal & Sons, Karmon Deori, Amritsar. ..Respondent CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Mr. Denesh Goyal, Advocate for the appellant. None for the respondent. RAJIVE BHALLA, J (Oral) The Income Tax Appellate Tribunal has, pursuant to an order dated 27.01.1999, passed by this Court in I.T.C.No.38 of 1984, referred the following modified question of law:- “Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessment was invalid and a nullity in the absence of service of notices on all the legal representatives of the deceased-assessee, Roshan Lal.” Counsel for the revenue submits that, though, it is true Kumar Naresh N 2013.11.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh

Income Tax Reference No.179 of 1999 -2- that Roshan Lal, the assessee, passed away during assessment proceedings but as he was represented prior to and, thereafter, by his son Narinder Kumar, the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal have erred in holding that in the absence of other legal heirs, assessment proceedings are a nullity. It is contended that Narinder Kumar having attended assessment proceedings, is deemed to have waived the plea that in the absence of his other legal heirs, assessment proceedings are a nullity. No one is present on behalf of the respondent. We have heard counsel for the revenue, perused the assessment order, the order passed by the Commissioner of Income Tax (Appeals) and the order passed by the Income Tax Appellate Tribunal. Admittedly, assessment viz-a-viz. Roshan Lal c/o M/s Roshan Lal & Sons was pending adjudication, before the Assessing Officer, when Roshan Lal passed away. The Assessing Officer proceeded to finalise the assessment by holding though Roshan Lal, the assessee, has passed away, re-assessment proceedings can be completed as Narinder Kumar, a son of the assessee, has attended proceedings. An appeal filed before the CIT(Appeals) was allowed by holding that in the absence of other legal heirs of the assessee, the assessment order is null and void. Aggrieved by this order, the revenue filed an appeal. The Income Tax Appellate Tribunal dismissed the appeal by affirming the order passed by the CIT (Appeals). Kumar Naresh N 2013.11.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh

Income Tax Reference No.179 of 1999 -3- The question of law, forwarded for an answer, has been repeatedly answered by holding that an assessment completed without impleading all the legal representatives of a deceased- assessee, particularly where the Assessing Officer is aware of this fact, is a nullity. An argument raised by counsel for the revenue that as a son of assessee was present, the legal heirs have acquiesced in the assessment, is entirely misplaced. Admittedly, upon his demise, Roshan Lal's estate was inherited by five legal representatives. The presence of Narinder Kumar in assessment proceedings cannot raise an inference that he represented the entire estate with consent of other legal representatives, as to acquiesce in the assessment proceedings. In this view of the matter, we answer the question of law by holding that if an assessment order is passed without impleading all the legal representatives of a deceased assessee, such an order shall necessary be null and void thereby requiring the Assessing Officer to proceed afresh, after impleading the legal representatives. Disposed of accordingly. (RAJIVE BHALLA) JUDGE November 07, 2013 (DR. BHARAT BHUSHAN PARSOON) nt

JUDGE Kumar Naresh N 2013.11.20 10:50 I attest to the accuracy and integrity of this document High Court Chandigarh