KAMALESH KUMAR MEHTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The following question under Section 256(1) uf the Income-tax Act, 1961, is involved in this reference :

(2.) Shri H. R. Mehta was the assessee. The facts stated by the Tribunal may briefly be stated as follows : After receiving the notices under Section 148 of the Income-tax Act, 1961, for the assessment years 1959-60 to 1961-62, Shri Mehta filed returns and revised returns for these assessment years. The assessments were completed under Section 144 of the Act but they were reopened on June 20, 1968, under Section 146 of the Act and thereafter Shri Mehta died on 23rd July, 1968, and his death was not brought to the notice of the Income-tax Officer by Mr. M. C. Poddar, a chartered accountant, who was appearing for him before the Income-tax Officer. The assessments were thus completed on January 30, 1969, by the Income-tax Officer without knowing that in the meantime Shri Mehta had died.

(3.) Shri Kamalesh Kumar Mehta, one of the legal representatives of the deceased assessee, filed appeals before the Appellate Assistant Commissioner and he was represented by the same Mr. Poddar. The Appellate Assistant Commissioner accepted the contention of Mr. Poddar that after the death of the assessee a notice of hearing should have been given to the legal representatives and the assessments should have been completed in their hands under Section 159 of the Act. Since the Income-tax Officer was not informed about the death of the assessee, the Appellate Assistant Commissioner set aside those assessments and directed the Income-tax Officer to reframe the assessments after getting the names of the legal representatives and after issuing notices to them.