2021 (5) TMI 915 - AT - Income Tax

Validity of Revision u/s 263 - Assessment passed on a dead person - HELD THAT - Having regard to facts that the order u/s 263 was passed on the assessee, after the death of the assessee and the consequent assessment order u/s 143(3) rw.s. 263 is also passed on a dead person, the said order has no legs to stand. Therefore, we set aside the assessment order dated 5.7.2019 passed on a dead person as not maintainable in law. Assessee s appeal is allowed.

Summary

Issues:
Assessment order validity post-assessee's death, Jurisdiction of CIT(A) over order u/s 143(3) r.w.s. 263, Maintainability of appeal, Lack of opportunity to legal heir, Jurisdiction of Pr.CIT u/s 263 over deposit issue, Validity of assessment order u/s 143(3) r.w.s. 263 on deceased individual.

Analysis:
1. The case involves an appeal for AY 2013-14 against the order of the CIT(A)-6, Hyderabad, where the assessee's income tax return was initially accepted but later re-opened due to unexplained deposits. The Pr.CIT-6 revised the assessment order, adding the unexplained deposits to the total income.

2. The CIT(A) upheld the Assessing Officer's decision, stating that the assessment order was in compliance with Pr.CIT's directions u/s 263, leading to the current appeal before the tribunal by the assessee.

3. The grounds of appeal raised by the assessee included challenging the jurisdiction of CIT(A) over the order passed u/s 143(3) r.w.s. 263, contesting the maintainability of the appeal, and highlighting the lack of opportunity to legal heirs due to the assessee's demise during the assessment process.

4. The counsel for the assessee argued that the assessment order passed post the assessee's death is invalid as it was based on incomplete information from legal heirs. The tribunal considered the timing of the orders concerning the deceased assessee and deemed the assessment order as not maintainable in law, ultimately allowing the assessee's appeal.

5. The tribunal concluded that the assessment order u/s 143(3) r.w.s. 263 on a deceased individual lacks legal validity, thereby setting it aside and ruling in favor of the assessee. The judgment emphasized the importance of proper jurisdiction and procedural compliance in tax assessments, especially in cases involving deceased taxpayers.

6. The decision, pronounced on 27/05/2021 by the Appellate Tribunal ITAT Hyderabad, underlines the significance of ensuring due process and legal validity in tax assessments, particularly when dealing with issues related to deceased taxpayers and jurisdictional matters.