K P MATHEW Vs. AGRICULTURAL INCOME TAX OFFICER

JUDGEMENT

(1.) This case raises an important question, which though simple, has become difficult to answer in the light of various judicial pronouncements. The question is whether an assessment of the income of a deceased person made without issuing notice to all his legal representatives is wholly bad under law, or whether it is good at least in respect of those legal representatives to whom all the notices have been duly issued. The case arises under the Agricultural Income Tax Act, 1950. The relevant provisions in this Act and in the Income Tax Act, 1961 are similar; and the same question would arise also under the latter Act. So I issued notice to the Income Tax Counsel of the Central Government; and I had the able assistance of Shri. P. A. Francis, Counsel for the Central Revenue, who placed before me all the relevant decisions on the question.

(2.) It is now necessary to briefly state the facts of the case. One Ittiachan Poulose, who was an assessee under the Agricultural Income Tax Act, 1950 within the jurisdiction of the respondent, the Agricultural Income Tax Officer, Alwaye, filed a return of his total agricultural income for the assessment year 1970-71. In response to a notice issued under S.18(2) of the Act, be produced his books of account before the respondent on 26-6-1970 in support of the return. The accounts appeared to be defective and unacceptable. The respondent issued a notice to the assessee on 21-10-1970 to show cause why his accounts should not be rejected and his income assessed to the best of judgment for the reasons and in the manner stated in the notice. The assessee died intestate on 26-9-1970, leaving three sons as his legal representatives. The petitioner is one of them. The above notice was issued to the assessee, without knowing about his death. The notice was, however, received by the petitioner, who filed an objection to the proposed best judgment assessment. The objection was overruled; and the respondent, by his order Ext. P4 dated 30-10-1970, made an assessment determining the total income to the best of his judgment. The name of the assessee is described in the order as "Shri Poulose Mathew for and on behalf of late Shri. Ittiachan Poulose". Shri. Poulose Mathew is the petitioner. Admittedly, the assessment was made without issuing notice to the other two legal representatives. The contention is that such an assessment is bad under law.

(3.) S.24 of the Agricultural Income Tax Act, 1950 contains the provision for assessment of the legal representatives of a deceased person in respect of his income. That section reads:-