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2020 (9) TMI 66 - AT - Income TaxAssessment is in the name of the deceased person - HELD THAT - A proceeding could be continued against the legal representative of the deceased assessee only if it had been initiated when the assessee was alive. Thus, it has been decided that the assessment made on dead person, on the face of it, be a nullity in law. In the case in hand, we find that when the factum of death was brought to the notice of the authorities below, instead of substituting the legal heirs of the assessee in the file of the Revenue both the authorities below proceeded with and finalized the assessment against the assessee, Late Ghanshyam H Parsana, since deceased which is unlawful, arbitrary, erroneous and bad in law. No merit in the proceeding itself having been continued and finalized against the dead person which is void ab initio and the same is liable to be quashed. - Decided in favour of assessee.
Issues Involved:
1. Delay in filing the appeal. 2. Validity of assessment proceedings against a deceased person. Detailed Analysis: 1. Delay in Filing the Appeal: The appeal was filed with a delay of 566 days. The delay was attributed to the death of the assessee on 06.08.2013 during the pendency of the re-assessment proceeding. The notice under Section 142(1) of the Income Tax Act, 1961 was served after the assessee's death. The nephew of the deceased assessee was responsible for following up with the Income Tax Officer (ITO) regarding the pending proceedings. The appellate order dated 30.03.2016 rejecting the appeal was not received by the nephew. It was only upon requesting a certified copy on 23.06.2017 that it was received on 10.11.2017, and the appeal was filed on 18.12.2017. An affidavit by the nephew explaining the delay was submitted, and it was argued that there was no negligence on the part of the relative. The Tribunal found the explanation genuine and condoned the delay for the ends of justice. 2. Validity of Assessment Proceedings Against a Deceased Person: The core issue was whether an assessment proceeding can be finalized in the name of a deceased person. The assessee passed away on 08.03.2013 during the appellate proceeding, a fact communicated to the Assessing Officer (AO) by the nephew with a copy of the death certificate. Despite this, the AO finalized the matter against the deceased. The Commissioner of Income Tax (Appeals) [CIT(A)] also proceeded with the appellate proceedings and dismissed the appeal on 30.03.2016. The assessee's counsel argued that framing an assessment on a deceased person is against legal principles and void ab initio, relying on a judgment by the Co-ordinate Bench in ITA No. 426/Ahd/2011 for A.Y. 2007-08. The Revenue contended that since the nephew appeared before the authorities, the assessment was rightly finalized in the deceased's name. However, the Tribunal noted that the death certificate was submitted to both the AO and CIT(A), and despite this, the proceedings were continued against the deceased. The Tribunal emphasized that proceedings should have been against the legal heirs once the fact of death was known. Citing the Co-ordinate Bench's decision, the Tribunal reiterated that an assessment against a deceased person is a nullity in law. The Tribunal concluded that the proceedings were unlawful, arbitrary, and void ab initio, and thus quashed the assessment. Conclusion: The Tribunal allowed the appeal, condoning the delay and quashing the assessment proceedings against the deceased person as void ab initio. The decision was pronounced in open court on 31/08/2020.
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