2022 (9) TMI 1041 - HC - Income Tax

Revision u/s 263 against non-existent person - HELD THAT - The factum of the death of the deceased assessee was brought to the notice of the Principal Commissioner of Income Tax, vide communication dated 07th March, 2016, which was not only acknowledged by hand receipt but also got reflected in the order dated 16th March, 2016 passed under Section 263 of the Act by the Principal Commissioner of Income Tax. It is thus stated that having full knowledge about the factum of the death of the deceased assessee, the authority had proceeded to pass an order against a dead person, which was thus a nullity in law. Since the issue which is now sought to be raised before this Court in the present appeal, was not an issue which was raised or agitated before the Tribunal, but nevertheless has a direct bearing on the controversy, we deem it necessary to remand the matter to the Tribunal for a fresh consideration on this limited issue, keeping all other issues, which have been raised in the present memo of appeal, open.

Summary

Issues involved:
Challenge to order dated 17th March, 2017 passed by the Income Tax Appellate Tribunal; Death of Ms. Ranjana Pala on 22nd January, 2016; Validity of order passed by the Principal Commissioner of Income Tax after the death of the assessee; Amendment to memo of appeal to incorporate the issue of the deceased assessee; Remand of the matter to the Tribunal for fresh consideration on the limited issue.

Analysis:

The appeal before the Bombay High Court challenged the order passed by the Income Tax Appellate Tribunal (ITAT) concerning the assessment year 1996-97. During the appeal, it was argued that a crucial ground regarding the death of Ms. Ranjana Pala on 22nd January, 2016, was not raised before the Tribunal. The appellant sought to amend the memo of appeal to include this issue, questioning the legality of an order passed by the Principal Commissioner of Income Tax after the death of the assessee.

The High Court allowed the amendment to the memo of appeal to incorporate the issue of the deceased assessee, Ms. Ranjana Pala. It was noted that the death of Ms. Pala was confirmed by a death certificate issued by authorities in Singapore, where she passed away at Mount Alizabeth Hospital. The communication regarding her death was acknowledged by the Principal Commissioner of Income Tax, and it was highlighted that proceeding against a deceased person was legally invalid.

Although the issue of the deceased assessee was not raised before the Tribunal, the High Court deemed it necessary to remand the matter back to the Tribunal for fresh consideration specifically on this limited issue. The Court instructed the Tribunal to reconsider this issue while keeping all other raised issues in the memo of appeal open for further examination.

Consequently, the High Court remanded the matter to the Tribunal for a fresh review in light of the observations made. The Tribunal was directed to pass appropriate orders within a period of four months. Finally, the appeal was disposed of accordingly, indicating the completion of the legal proceedings in this case.