Rakesh Jain Vs ITO (ITAT Mumbai)
In Rakesh Jain (Legal heir of Late Bhawarlal Shrilal Jain) (AY 2013-14), the ITAT quashed reassessment proceedings initiated u/s 147 against a deceased individual despite prior intimation of death to the department. The AO had added ₹1.67 Cr u/s 69A towards cash deposits and levied multiple penalties, while CIT(A) dismissed appeals on limitation without examining merits.
The Tribunal held that proceedings against a dead person are void unless initiated against legal representatives u/s 159, and such jurisdictional defect cannot be cured u/s 292B. It distinguished the SC ruling in Mahagun Realtors and relied on Bombay HC principles that notices to deceased persons are invalid. The Bench also noted that the same bank transactions were already disclosed and taxed in the hands of the legal heir, leading to duplication of income. Consequently, reassessment was quashed and penalties u/s 271F, 272A(1)(d) & 271(1)(b) were deleted as consequential.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These four appeals are directed against separate orders passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”], all dated 26.09.2025 and 18.09.2025, for Assessment Year 2013– 14. Since the issues involved in all the appeals arise out of the same set of facts and relate to proceedings initiated in the name of Late Shri Bhawarlal Shrilal Jain, these appeals were heard together and are being disposed of by this common order for the sake of convenience and brevity.
