PURAN CHAND LAXMI CHAND Vs. INCOME TAX OFFICER
LAWS(IT)-1985-11-14
INCOME TAX APPELLATE TRIBUNAL
Decided on November 29,1985

Appellant
VERSUS
Respondents

JUDGEMENT

S. Narayanan, Accountant Member - (1.)THE grounds of appeal of the assessee in this appeal are argumentative and the objections taken are not immediately apparent. However, it is seen that the following objections have been taken in effect:
(a) THE assessment made by the ITO on the assessee for this year (1975-76) on 24-9-1981 is a nullity.

(b) THE Commissioner (Appeals) erred in not quashing the assessment on that ground.

(c) THE Commissioner (Appeals) further erred in setting aside the assessment, directing the ITO to make it afresh after hearing the assessee.

(2.)We have heard Shri P.N. Chopra, the learned counsel for the assessee as well as Shri J.S. Rao, departmental representative. We were also taken through the orders of the authorities below and the material on record. We would first of all notice the relevant facts.
Puran Chand Laxmi Chand was the sole proprietary concern of one Puran Chand who died on 24-3-1974. Puran Chand died intestate, leaving behind five legal heirs, namely, Sarbati Devi, his wife, and Laxmi Chand, Vijay Agarwal, Sanjay Agarwal and Ajay Agarwal, his sons. Assessment was originally completed under Section 144 of the Income-tax Act, 1961 ('the Act') for this assessment year by the ITO District III(29) on 23-9-1978, the assessment being made in the name of Puran Chand Laxmi Chand. Puran Chand having died on 24-3-1974 the return of income for this year had in fact been filed by Laxmi Chand, one of the son of Puran Chand, on 16-6-1975. It would appear that this assessment was cancelled on an application being filed by the asscssee under Section 146 of the Act.

(3.)THEREAFTER there was a fresh assessment proceeding. A draft assessment order was prepared by the ITO for reference to the IAC under Section 144B. This draft assessment order also showed the name of the assessee as Puran Chand Laxmi Chand, the status being shown as 'individual'. These assessment proceedings were also based on the return filed on 16-6-1975 by Laxmi Chand, one of the legal heirs.


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