2019 (9) TMI 1603 - HC - Income Tax

Validity of assessment - notice u/s 142(1) came to be issued in the name of deceased person - HELD THAT - This Court is convinced that the impugned order requires to be set aside since the notice itself was issued against a dead person. In that view of the matter, the appeal is allowed and the impugned order confirming the order of the Appellate Commissioner is hereby set aside. Consequently, the order passed by the Income Tax Officer, Ward 3(2)(2), Bangalore is also set aside. The matter is remanded back to the Assessing Officer to redo the entire procedure bearing in mind that the assessee is no more.

Summary

Issues:
Condonation of delay in filing appeal, Error in notice issued to deceased person, Compliance with Income Tax Act, Setting aside impugned order, Remand for reassessment.

Condonation of Delay:
The appellant filed IA.I of 2019 seeking condonation of an 84-day delay in filing the appeal. The court found the cause shown for the delay to be sufficient and allowed the application, condoning the delay in filing the appeal.

Error in Notice Issued to Deceased Person:
The appellant's Senior Counsel argued that the appellate authorities erred in considering the original notice issued under Section 143(2) of the Income Tax Act to a deceased person as compliant with Section 159 of the Act. The counsel contended that since the notice was against a dead person, the authorities were wrong in proceeding with the case, even though the authorized representative and legal heir were involved. The court agreed with this argument, stating that the notice against a deceased person could not be sustained.

Compliance with Income Tax Act:
After hearing both counsels, the court concluded that the impugned order needed to be set aside due to the error in issuing the notice to a deceased person. Consequently, the appeal was allowed, and the order confirming the Appellate Commissioner's decision was set aside. The order by the Income Tax Officer for the Assessment Year 2013-14 was also annulled. The matter was remanded back to the Assessing Officer for a redo, considering the deceased status of the assessee.

Setting Aside Impugned Order:
The court set aside the impugned order dated 31st May, 2018, and directed the appellant to appear before the Assessing Officer on a specified date without further notice. The decision to set aside the order was based on the fundamental flaw of issuing a notice to a deceased person, leading to the need for reassessment.

Remand for Reassessment:
In light of the error in the original notice, the court remanded the matter back to the Assessing Officer for a fresh assessment, emphasizing the deceased status of the assessee. The appellant was instructed to appear before the Assessing Officer on a specific date for the reassessment process to proceed without delay.

This judgment highlights the importance of procedural compliance with the Income Tax Act and the implications of errors in issuing notices, especially in cases involving deceased individuals. The decision underscores the need for accuracy and adherence to legal requirements in tax assessments, ensuring fair treatment and due process for all parties involved.