REGARDING RECOVERY FROM LEGAL HEIR OF APPELLENT

This query is : Resolved

Suresh S. Tejwani (Querist)
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30 July 2024 If Appellent is expired and his son has not received any property or any assets or any cash or Bank balance from his deceased father
Now there is appeal proceedings is pending before the death of appellent in ITAT so can Income tax office can make recovery from their son of the previous outstanding demand which is imposed before the death of appellent?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2024 Legal heirs liability is limited to the assets they inherit [Section 159(6)]

The amount for paying the tax has to go out from the deceased’s estate. Liability of the legal representative is limited to the extent the estate is capable of meeting the liability and it does not extend to the personal assets of the legal representative. The legal heir is not responsible for paying taxes from his own pocket with respect to inherited assets to which they do not have access. In other words, the liability of the legal heir would be limited to the assets of the deceased which are or might come into his possession.

For example, if a person receives Rs. 20,00,000 as his share from his father’s estate and his father’s tax liability was Rs. 25,00,000, the former cannot be made liable to pay more than Rs. 20,00,000. The liability of the legal heir shall be limited to the value of the asset charged, disposed of, or parted with.