2023 (12) TMI 587 - AT - Income Tax

Reopening of assessment against deceased person - HELD THAT - Looking to the material available on record, the notice issued by the Assessing Officer (for re-opening of the assessment is invalid on account of fact that same was addressed to a deceased person. Interestingly, another appellate order dated 22.09.2020 is on record and in Form No.35, the factum of death of the deceased assessee on 01.11.2009, is mentioned and it is also stated that the notice issued by the AO was not received by the Legal Heir of the Late assessee. Both of the authorities below did not deal with the issue regarding notice u/s 148 was issued against the dead person and also the impugned assessment order was passed against a dead person. Therefore, in view of these undisputed facts i.e. Late Smt. Kushal Kachwaha had expired on 01.11.2009 itself and the factum of death was duly brought to the notice of the Revenue Authority as stated by the Ld. Counsel for the assessee. Therefore, respectfully following the judgment of Davinder Singh Thapar 2022 (6) TMI 695 - DELHI HIGH COURT . The notice issued u/s 148 are held to be bad in law hence, quashed. Appeal of the assessee is allowed.

Summary

Issues:
The appeal challenges the order passed by Ld.CIT(A), National Faceless Appeal Centre dated 29.06.2023 for the assessment year 2010-11, concerning the assessment made in the name of a deceased assessee.

Issue 1: Validity of Assessment Order
The Legal Heir of the assessee contended that the assessment order made by the Ld.AO in the name of the deceased assessee, following a notice u/s 148 also issued in the name of the deceased assessee, is unlawful and should be quashed. It was argued that the fact of the assessee's death was communicated to the Revenue Authority before the notice u/s 148 was issued. The Tribunal found that the notice for re-opening the assessment was invalid as it was addressed to a deceased person. The fact of the deceased assessee's death was duly brought to the notice of the Revenue Authority. Citing a judgment of the Hon'ble Delhi High Court, the Tribunal held that the notice u/s 148 and the assessment order were unlawful and therefore quashed.

Issue 2: Compliance with Legal Procedures
The Ld. Sr. DR argued that it was the responsibility of the Legal Heir of the assessee to inform about the death of the assessee. However, the Tribunal found that the fact of the deceased assessee's death was indeed brought to the notice of the Revenue Authority before the notice u/s 148 was issued. The Tribunal emphasized that the notice and assessment order were both issued against a dead person, rendering them invalid.

Decision:
The Tribunal allowed the appeal of the assessee, quashing the notice issued u/s 148 of the Act and the assessment order. The Tribunal found that both the notice and the assessment order were invalid as they were issued against a deceased person, in line with the legal precedent set by the Hon'ble Delhi High Court.