2023 (8) TMI 1462 - AT - Income Tax

Assessment against dead person - HELD THAT - It is a settled position of law that assessing officer cannot frame the assessment on dead person - As decided in M/s. Maloo Construction Pvt. Ltd. 2022 (1) TMI 781 - ITAT SURAT continuation of the legal proceeding under the Income Tax Act in the name of dead person or company is without authority of law. Thus we note that assessment cannot be made on the person/company who has died/dissolved and this issue is no longer res integra. For this reliance can be placed on the judgment of the Hon ble Supreme Court in the case of PCIT vs. Maruti Suzuki India Ltd. 2019 (7) TMI 1449 - SUPREME COURT Therefore we quash the assessment order passed by the assessing officer against dead person. Assessee appeal allowed.

Summary

Issues involved: Appeals filed by the assessee for Assessment Year (AY) 2012-13, concerning separate orders from the Commissioner of Income Tax (Appeals) and National Faceless Appeal Centre, arising from an assessment order u/s 144 r.w.s. 147 of the Income Tax Act, 1961, and a penalty order u/s 271(1)(c) of the Act.

Condonation of Delay:
- The appeals were delayed by 4 days and 3 days respectively.
- The delay was attributed to postal and transit reasons.
- The assessee requested condonation of delay, which was opposed by the Learned Departmental Representative (Ld. DR).
- The Tribunal, after hearing both parties, condoned the minor delays and admitted the appeals for hearing.

Assessment on Deceased Assessee:
- The assessee had passed away before the assessment order was framed.
- Legal heirs argued that assessment on a deceased person is invalid.
- The death certificate was submitted before the Commissioner of Income Tax (Appeals).
- The Tribunal noted the settled legal position that assessment on a deceased person is not permissible.
- Citing relevant case laws, the Tribunal quashed the assessment order and allowed the appeal.

Penalty under Section 271(1)(c):
- Since the quantum assessment was quashed, the penalty under section 271(1)(c) was also deleted.
- The Tribunal allowed the appeal related to the penalty.

Conclusion:
- Both appeals filed by the assessee were allowed.
- The assessment order was quashed due to being made on a deceased person.
- The penalty under section 271(1)(c) was deleted as a result of quashing the quantum assessment.