Mohhamad Shafique Vs ITO (ITAT Nagpur)
Summary: The ITAT Nagpur considered an appeal against the order of the Ld. CIT(A), NFAC, Delhi dated 11.02.2026, arising from an assessment order passed under section 147 read with section 144 of the Income-tax Act, 1961 dated 02.01.2025. The assessee challenged the reassessment proceedings, principally contending that notice under section 148 dated 30.03.2024 had been issued in the name of a deceased person who had expired on 14.12.2019. The grounds also raised issues concerning sections 159, 292B and 292BB and the validity of the assumption of jurisdiction under section 147. The Tribunal observed that the assessee had raised legal issues concerning the validity of the notice and the reassessment proceedings, but the Ld. CIT(A) had not adjudicated those legal issues. Relying upon the judgment of the Hon’ble Delhi High Court in Divine Infracon Private Limited Vs. PCIT 2025 (171) Taxman.com 92, the Tribunal held that it could not proceed to decide a ground which did not arise from the impugned order of the first appellate authority. The Tribunal therefore restored all issues raised in the appeal, including the legal issues in grounds Nos. 1 to 4, to the file of the Ld. CIT(A) for necessary adjudication in accordance with law, with an opportunity of hearing to the assessee. The appeal was allowed for statistical purposes.
Relevant TaxGuru Reading
The issues raised in the appeal concern reassessment notices, notices issued in the name of deceased persons and the scope of sections 292B and 292BB. TaxGuru has separately published material dealing with these subjects, including income tax notices issued to deceased individuals, issue of notices and assessment orders in the name of deceased persons, Section 292B and Section 292BB.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
1. This appeal at the instance of assessee is directed against the order passed by Ld. CIT(A), NFAC, Delhi u/s 250 of the Income-tax Act, 1961 dated 11.02.2026 which is arising out of the Assessment Order passed u/s. 147 r.w.s 144 of the IT Act dated 02.01.2025.
2. Assessee has raised following grounds of appeal:-
1. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) erred in not appreciating the fact that the assessment order passed by the Assessing Officer under section 147 read with section 144B of the Income Tax Act, 1961, which is illegal, bad in law and liable to be quashed.
2. On the facts and circumstances of the case and in law, the learned CIT(A) failed to appreciate that the notice issued under section 148 dated 30.03.2024 was issued in the name of a deceased person who had expired on 14.12.2019, and therefore the entire reassessment proceedings are void ab initio and without jurisdiction.
3. On the facts and circumstances of the case and in law, the learned CIT(A) erred in law in not holding that issuance of notice in the name of a deceased person is a jurisdictional defect which cannot be cured under section 292B or section 292BB of the Act.
4. The learned CIT(A) failed to appreciate that the Assessing Officer erred in not bringing the legal heir of the deceased assessee on record before initiating or completing the reassessment proceedings, thereby violating the mandatory provisions of section 159 of the Income Tax Act, 1961.
5. On the facts and circumstances of the case and in law, the learned CIT(A) erred in not appreciating that the entire reassessment proceedings are void ab initio since the very assumption of jurisdiction under section 147 is invalid in law.
6. General ground:
The appellant craves leave to add, alter, amend, or withdraw any of the above grounds before or at the time of hearing.
3. I have heard rival contentions and perused the records placed before me. I observe that the assessee has raised legal issues challenging the validity of notice issued u/s 148 dated 30.03.2024 in the name of the deceased person who expired on 14.12.2019, and therefore the entire reassessment proceedings are void and without jurisdiction. Ld. CIT(A) has not decided the legal issue referred above. Hon’ble Delhi High Court in the case of Divine Infracon Private Limited Vs. PCIT 2025 (171) Taxman.com 92 has held that the Tribunal has no jurisdiction to proceed to decide the ground which did not arise from the impugned order passed by first appellate authority, irrespective of such ground was raised in first appeal or not.
4. I therefore respectfully following the above judgement of Hon’ble Delhi High Court restore all the issues raised in the instant appeal including the legal issue raised in ground No. 1 to 4 to the file of Ld. CIT(A) for necessary adjudication and to decide in accordance with law. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
5. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 06th day of August, 2026.
