2015 (9) TMI 1413 - AT - Income Tax

Revision u/s 263 - validity of order passed against the dead person - Held that - As rightly contended by the Ld. representative for the assessee, the assessee Shri M.A. Margesan was not alive either on 06.09.2013, the date on which the show cause notice was issued or on 21.03.2014, the date on which the impugned order was passed by the Commissioner. The Commissioner has not taken any steps to implead the legal representative of the assessee. It is well settled principle of law that an order passed against the dead person is nullity in law and it cannot stand. Since the assessee was no more on the date of passing of the order dated 21.03.2014, the Commissioner cannot rectify the order by including the Legal Heir at this stage. In other words, it is not a rectifiable error. Since the order was passed against the dead person, it cannot stand in the eye of law. Accordingly, the impugned order passed by the Commissioner against the deceased Shri M.A. Margesan is quashed.- Decided in favour of assessee

Summary

Issues involved:
Validity of order passed by Commissioner under Section 263 of the Income-tax Act against a deceased assessee.

Analysis:
The appeal by the Legal Representative of the assessee challenged the order of the Commissioner of Income Tax, Chennai, dated 21.03.2014, regarding the assessment for the year 2009-10. The Ld. representative for the assessee argued that the order issued by the Commissioner under Section 263 of the Act against the deceased assessee was erroneous and prejudicial to the interests of Revenue. The representative contended that the Commissioner was aware of the death of the assessee before issuing the notice but still proceeded with the order. The Ld. Departmental Representative, on the other hand, argued that the notice was valid as the legal heirs participated in the proceedings. However, the Tribunal noted that the show cause notice was issued after the death of the assessee, and the Commissioner did not take steps to implead the legal representative. The Tribunal emphasized the legal principle that an order against a deceased person is null and void in law. The Tribunal found that since the assessee was deceased before the issuance of the notice and the passing of the order, the Commissioner's order was invalid. Consequently, the impugned order against the deceased assessee was quashed, and the appeal was allowed.

This judgment highlights the importance of following legal procedures and principles, particularly when dealing with matters involving deceased individuals. It underscores the necessity of ensuring that proper parties are impleaded in legal proceedings and that orders are passed in accordance with the law. The decision serves as a reminder of the consequences of issuing orders against deceased persons and the need for adherence to legal requirements to maintain the integrity and validity of judicial decisions.