Khursheed Dumasia Legal heir of late Sh. Rusi Kaikhushroo Bhumgara Vs ITO (ITAT Mumbai)
Dead Person Can’t Be Assessed: ITAT Quashes Entire Assessment Despite AO Being Informed of Death
The Mumbai ITAT quashed an assessment framed in the name of a deceased person, holding that any proceedings continued against a dead assessee after the Department was informed about the death are legally void and unsustainable.
In the case, the assessee had expired in January 2012, but the AO nevertheless proceeded to complete assessment under section 144 in October 2019 by making additions of ₹19 lakh towards alleged unexplained bank credits. The legal heir had specifically informed the AO about the death through a written reply along with the death certificate in response to notice issued under section 142(1).
Even before the CIT(A), the legal representative clearly stated that the appeal was being filed as legal heir of the deceased and once again furnished the death certificate. Despite this, both the AO and CIT(A) continued proceedings and passed orders in the name of the deceased person.
The Tribunal observed that once the Department was informed about the death, the authorities ought to have taken corrective steps and issued fresh proceedings in accordance with law instead of mechanically continuing against a non-existent person.
