Case Law Details
Farah Naaz & Others Vs ITO (ITAT Delhi)
Introduction: In a significant ruling, the Income Tax Appellate Tribunal (ITAT) in Delhi has held that Section 292BB of the Income Tax Act shall not be applicable if an assessee does not participate in reassessment proceedings. The ruling came about after the ITAT quashed a notice issued to a deceased individual.
Analysis: The case involved reassessment proceedings issued against a deceased person and subsequently upheld by the CIT (Appeals). The ITAT, citing judgments by the Hon’ble High Court of Delhi in the cases of Vipin Walia vs. ITO and Rajender Kumar Sehgal vs. ITO, quashed the reassessment order, stating that provisions of section 292BB were not applicable in the case. The Court noted that since the deceased person could not participate in the reassessment proceedings, the initiation of the proceedings, the issuance of notice, and all subsequent proceedings and orders were void ab initio.
In this judgment, the ITAT highlighted the importance of valid notice service, reaffirming that the notice issued to a deceased person could not hold legal ground. Additionally, this case underscores the significance of the assessee’s participation in reassessment proceedings, further solidifying the principles laid down in the cited judgments.
Conclusion: ITAT Delhi provides reiterates that Section 292BB is not applicable when an assessee is unable to participate in reassessment proceedings, particularly in situations where the assessee is deceased. Consequently, notices issued to a deceased individual and any subsequent proceedings are deemed void from the outset.
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