Jadagadder Pakkerappa Vs ITO (ITAT Bangalore)
Reassessment Notice Issued to Deceased Person Invalid – Entire Proceedings U/s 147 Quashed – ITAT Bangalore
The AO reopened the assessment for AY 2016-17 after noticing that the assessee had sold immovable property for ₹60,00,000 but had not filed a return of income. A notice u/s 148 was issued on 08-03-2023 and the AO ultimately completed reassessment u/s 147 r.w.s. 144 treating the entire sale proceeds as Short-Term Capital Gain due to non-compliance with notices. The CIT(A)/NFAC also dismissed the appeal ex-parte for non-appearance.
Before the Tribunal, the legal heir of the assessee submitted that the assessee had died on 10-10-2021, much before the issuance of notice u/s 148. Therefore, the reassessment notice issued in the name of a deceased person was invalid. It was also contended that no notice was issued to the legal representatives as required u/s 159(2)(b).
The Tribunal observed that the notice u/s 148 was issued after the death of the assessee and no notice was served on the legal heirs within the prescribed time. In such circumstances, proceedings ought to have been initiated directly against the legal representatives as per section 159. A notice issued to a deceased person is a jurisdictional defect and cannot be cured u/s 292B or 292BB.
Relying on decisions of the Karnataka High Court, Bombay High Court and Supreme Court, the Tribunal held that the notice u/s 148 issued in the name of the deceased assessee was null and void. Consequently, the reassessment order passed u/s 147 r.w.s. 144 was held to be non-est and the entire reassessment proceedings were quashed. The appeal of the assessee was therefore allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 27.5.2025 vide DIN & Order No.ITBA/NFAC/S/250/2025-26/1076474053(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2016-17.
