Jyoti Dhupar Vs ACIT (ITAT Delhi)
AO Must First Establish Legal Representative- Assessment on Deceased Invalid: ITAT Sends Case Back to AO
Tribunal remanded the matter back to AO after noting that both the processing u/s 143(1) & the CIT(A)’s order were passed in the name of a deceased proprietor, Late Shri Nirantar Kumar Dhupar, who expired on 23.05.2021. Assessee, being the widow & legal heir, submitted that the deceased was solely running the business of M/s Plastic Component Industries, that the family was in grief, unaware of business operations, & sought relief from demand raised post-death.
Tribunal observed that AO had not recorded any finding on whether Jyoti Dhupar was duly recognised as legal representative or whether she had inherited assets of the deceased, which is a prerequisite for fastening tax liability. It held that the matter required fresh examination regarding correct person against whom assessment/demand can be enforced. Tribunal therefore set aside the order & restored the issue to AO to decide afresh after granting adequate opportunity to the L/R to furnish all evidence. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against the order of the ACIT, A-2 Mumbai dated 28.01.2025 pertaining to A.Y 2020-21.
