Siva Janardhana Varma Vs DCIT (ITAT Hyderabad)
The ITAT Hyderabad allowed the assessee’s appeal against the order dated 10.08.2022 passed by the CIT(A)-NFAC, Delhi, for assessment year 2013-14. The only issue before the Tribunal was whether an assessment order passed against a deceased person was a nullity and whether any consequent demand could survive.
The Assessing Officer recorded that the assessee had died on 02.09.2015, whereas notice under Section 148 of the Income Tax Act, 1961 was issued on 16.05.2016, after his death. Although the Assessing Officer stated that the initial proceedings under Section 147 were dropped after being informed of the death and that proceedings were subsequently initiated against the Legal Representative (LR), the assessment order dated 29.10.2018 under Sections 144 read with 147 was passed in the name of the deceased assessee.
Before the CIT(A), the assessee had specifically contended that despite the Assessing Officer being aware of the death, the assessment order and demand under Section 156 were raised in the deceased assessee’s name and therefore could not be realised. The CIT(A), however, did not address this contention and decided the appeal on the merits.
Before the Tribunal, the Revenue submitted that proceedings under Section 147 had been re-initiated against the LR and that merely because the LR’s name did not appear on the assessment order, the proceedings should not be treated as invalid.
