Prasanna Prabhakaran Vs ITO (ITAT Ahmedabad)
Assessment in Name of Deceased Not Void – Jurisdiction Valid if 148 Notice Issued During Lifetime- ITAT Ahmedabad Restores Case to AO
The assessee’s legal heir, Mrs. Prasanna Prabhakaran, filed appeal with delay of 181 days due to her cancer treatment & personal trauma after her husband’s death. Tribunal found the explanation bona fide & condoned the delay.
In this case, AO reopened assessment u/s 147 after noticing cash deposits of ₹25,00,000/- & time deposits of ₹45,58,052/- in the deceased assessee’s bank account. Despite notices, no proper compliance was made. Although AO was informed of the assessee’s death in Feb 2021, details of legal heirs were not provided until much later, & the death certificate was uploaded only days before limitation expiry. AO completed assessment u/s 147 r.w.s. 144 on 29.09.2021, assessing ₹70,92,025/-, but in the name of the deceased person.
Before Tribunal, it was argued that assessment in name of a dead person is void ab initio. Reliance was placed on Gujarat HC ruling in Krishnaawtar Kabra & ITAT Ahmedabad in Chandrakant A. Gandhi. Revenue countered that since notice u/s 148 was issued while assessee was alive, jurisdiction was validly assumed, & proceedings could continue against legal heirs u/s 159. Reliance was placed on ITAT Ahmedabad ruling in Haresh Dayashankar Srivastava (2025).
