Assessment Against Deceased Person Quashed – Legal Heir Not Obliged to Inform Death

Nisha RajendraMavani Legal Vs ITO (ITAT Mumbai) The ITAT Mumbai allowed the assessee’s appeal and held that assessment framed in the name of a deceased person is a nullity in law. The Tribunal noted that the assessee had died before passing of assessment order, yet the AO proceeded u/s 147/144 without issuing notice to legal heirs, and even the CIT(A) failed to rectify the defect despite being informed. Relying on Savita Kapila (Delhi HC), it held that legal heirs are under no statutory obligation to intimate the death of the assessee to the department. On merits also, the Tribunal observed ...