Neeraj Kataria, Legal Heir of Ram Parkash Kataria Vs ITO (ITAT Delhi)
The appeal before the Income Tax Appellate Tribunal (ITAT) Delhi concerned the validity of reassessment proceedings initiated against a deceased assessee. The appeal was filed by the legal heir of Late Neeraj Kataria against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre dated 22.07.2025 for Assessment Year 2019-20.
The case arose after the Assessing Officer (AO) received information that the assessee had received enhanced compensation and interest from the Land Acquisition Officer on compulsory acquisition of land. Based on this information, the AO initiated reassessment proceedings and issued a notice under Section 148 of the Income Tax Act in the name of Neeraj Kataria. However, the assessee had already expired on 31.12.2016.
Subsequently, the AO completed the reassessment under Sections 147 read with 144 and 144B of the Act. The assessment determined taxable income by adding ₹3,65,47,361 as interest on enhanced compensation received on acquisition of land. The amount was treated as income from other sources under Section 56(2)(viii) after allowing deduction under Section 57.
The assessee challenged the reassessment proceedings, arguing that an assessment cannot be framed against a deceased person. It was submitted that once a person dies, their legal personality ceases to exist and any notice or assessment issued in the name of the deceased person becomes invalid. The assessee relied on several judicial precedents to support the contention that notices issued to deceased persons are void and unenforceable.
