Smt. Nileshwar Jayanthi Prabhu Vs DCIT (ITAT Bangalore)
Assessment Framed on Deceased Assessee Is Void Ab Initio
The Bangalore Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Smt. Nileshwar Jayanthi Prabhu, legal heir of Late Shri Nileshwar Damodar Prabhu, holding that an assessment order passed in the name of a deceased assessee is void ab initio and unenforceable in law.
The Tribunal noted that the assessee had expired on 06.12.2022, and the fact of death was within the knowledge of the Assessing Officer, as evidenced by the death certificate and communications placed on record (refer pages 3–4 of the order). Despite this, the Assessing Officer proceeded to pass the assessment order dated 26.05.2023 in the name of the deceased, instead of substituting the legal heir and continuing proceedings in accordance with law.
Relying on settled legal principles, the Tribunal held that once the death of the assessee is known, it is mandatory for the Assessing Officer to bring the legal representative on record and thereafter proceed under the statutory framework. Failure to do so strikes at the very jurisdiction of the assessment, rendering the order a nullity.
Since the appeal was allowed on this jurisdictional ground, the Tribunal found it unnecessary to adjudicate the other grounds relating to Section 148 proceedings, sanction under Section 151, non-service of the Section 148A(d) order, or disallowance of long-term capital loss and interest. Accordingly, the assessment order was set aside in entirety and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
