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TMI Blog2024 (11) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Faceless Appeal Centre, Delhi [NFAC], for the AY 2015-16 on the following grounds:- 1. The original order has been passed on a deceased/non-existent person and is therefore bad in law and is liable to be quashed. This has been referenced among the grounds at the First Appellate Authority level. 2. The impugned order is liable to be quashed in toto for being bad in law and for want of application of principles of natural justice and for want of compliance of legal requirements as stipulated in quasi-judicial proceedings. 3. The impugned order is liable to be quashed for noncompliance with stipulated procedures for service of notice in assessment proceedings as well as in appellate proceedings. There is no confirmation of service of notice to assessee/ appellant by way of physical service of notice/ mahazar report. 4. The Assessing Officer has erred in making addition of Rs. 1,57,00,000/- to the income of the appellant. The addition to the income is bad both in law and on facts and is liable to be deleted in entirety. 5. The Assessing Officer and appellate authority have not appreciated the facts of the case. On review of the facts and law applicable, it will be clear that the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t report and income tax return, hence there is no mismatch in turnover. The assessee deposited cash of Rs. 1,57,00,000 in his Savings Bank account with SBH (now SBI), J C Road Br., Bangalore as per AIR information. As there was no reply from the assessee, the AO sent a letter to the Bank requesting statement from 01.04.2015 to 31.03.2016, since there was no reply from the bank, the entire cash deposit was added back to the total income of the assessee u/s. 68 and order u/s. 143(3) r.w.s. 144 dated 26.12.2017 was passed in the name of Mishrilal Sharnickraj, PAN: ADOPS 5835Q. The L/R of the assessee Shri Nirmal Kumar holding PAN ACLPD2715J filed appeal before the CIT(Appeals) on 25.01.2018. 3. The ld. CIT(Appeals) issued 14 notices, however there was no reply from the assessee s side, therefore he decided the case on the basis of material available before him and confirmed the addition of Rs. 1.57 crores u/s. 68 of the Act. Aggrieved, the L/R of the assessee is in appeal before the ITAT. 4. At the outset, the ld. AR of the assessee strongly submitted that the order passed by the AO in the name of deceased assessee is not sustainable as the assessee died on 25.07.2015 and Shri Nirmal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamined the same, therefore we are deciding the legal issue first. The turnover of the assessee during the year was Rs. 6,80,35,230.62/- and books of accounts were audited by the C.A. on 30.09.2015. The return of income was filed by Nirmal Kumar on 02.11.2015, adding his name in the income tax web portal as L/R and digitally signed holding PAN: ACLPD 2715J. In the income tax web portal, under the head Authorised Partner , there is sub-head Register as Representative Assessee and without registering as representative assessee, it is not possible to file return of income. After submitting necessary documents for getting registered as representative assessee, the assessee has uploaded the L/R certificate. Further in the web portal under the sub-head Deceased (Legal Heir) , firstly representative has to register after filling details like copy of PAN of deceased, copy of death certificate, copy of L/R proof as per norms, etc. These are mandatory documents before getting registered as L/R. After approval by the department, the assessee was able to file return of the deceased assessee and signed digitally. It clearly shows that the assessee s L/R had already informed to the department be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that a notice under section 148 of the Act is a jurisdictional notice, and existence of a valid notice under section 148 is a condition precedent for exercise of jurisdiction by the Assessing Officer to assess or reassess under section 147 of the Act. The want of valid notice affects the jurisdiction of the Assessing Officer to proceed with the assessment and thus, affects the validity of the proceedings for assessment or reassessment. A notice issued under section 148 of the Act against a dead person is invalid, unless the legal representative submits to the jurisdiction of the Assessing Officer without raising any objection. Consequently, in view of the above, a reopening notice under section 148 of the Act, 1961 issued in the name of a deceased-assessee is null and void. Also, no notice under section 148 of the Act, 1961 was ever issued upon the petitioner during the period of limitation. Consequently the proceedings against the petitioner are barred by limitation as per section 149(1)( b ) of the Act, 1961. As in the present case proceedings were not initiated/pending against the assessee when he was alive and after his death the legal representative did not step into the sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso been passed against the dead person on his PAN without bringing on record all his legal representatives, therefore, the said assessment order and the subsequent notices are null and void and are liable to be set aside. 13. Consequently, the impugned notice dated 22nd September, 2019 issued under section 143(2) of the Act and the impugned assessment order dated 30th September, 2021 is set aside along with all consequential proceedings and notices. The petition is allowed; however, Revenue will have the liberty to take steps in the matter, albeit as per law. In case any such-steps are taken, the Petitioner will have liberty to assail the same, in accordance with law. 7. Respectfully following the above judgment, we quash the assessment order since the AO issued notice u/s. 143(2) and passed order u/s 144 of the Income Tax Act in the name of deceased and non-existent assessee whereas the AO had information about the death of the assessee before passing order u/s 144 of the Act. Accordingly the assessment order passed in the name of deceased and non-existent assessee is not a valid order passed in the eyes of law. Accordingly we quash the assessment order. 8. In the result, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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