Section 159 permits reassessment against a legal representative; High Court quashes orders and remits for fresh merits hearing

5-Second Takeaway

Section 159 allows reassessment proceedings to continue against a deceased assessee’s legal representative, and the legal representative cannot object that the action under section 147 was time-barred under sections 149 or 153(2). The High Court nevertheless quashed the impugned orders and remitted the matter for a fresh decision on merits alone, excluding jurisdiction and limitation issues on remand.

The High Court considered a reassessment initiated after the assessee’s death and challenged by the legal representative. The petitioner argued that the proceedings were commenced without notice and were barred by limitation.

The court held that section 159 governs liability in such cases and permits any proceeding that could have been taken against the deceased to be taken against the legal representative, including reassessment under section 147. It also noted that a legal representative is deemed to be an assessee for the purposes of the Act.

On that footing, the court rejected the limitation challenge and held that it was not open to the petitioner to contend that the reassessment or the resulting assessment was time-barred. The absence of intimation to the department was also treated as irrelevant to the validity of the proceedings already initiated under section 159(2)(b).

At the same time, the court accepted the request for a fresh opportunity to explain the case. The impugned orders were quashed and the matter was remitted to the assessing authority to pass a fresh order on merits alone, without reopening jurisdiction or limitation objections.