Case Law Details
Late Shri Keshavlal Somnath Panchal Through Widow & Legal Heir Vs ITO (ITAT Ahmedabad)
The issue under consideration is whether the order passed in the name of deceased person is justified in law?
ITAT states that before service of notice under section 142(1) Shri Keshavlal Somnath Panchal had already expired. His legal heirs did not file return for this assessment year. Therefore, the right course for the AO is to find out L/Rs, and more particularly, L/R who has inherited assets and liabilities of Shri Keshavlal Somnath Panchal because L/R is liable to pay taxes of the deceased only equivalent to the property inherited from the For example, in the present case, if the assessment order is finalized, but later on Smt. Champaben Keshavlal Patel comes forward and states that she has not inherited any property from Shri Keshavlal Somnath Panchal, then demand cannot be recovered. Other L/Rs. if any would take an objection that they have not served any notice under section 142(1) or under section 148 etc. Therefore, procedure followed by the AO in the present case is patently illegal. Service of notice upon a dead person under section 142(1) would not authorise him to assume jurisdiction to pass assessment order on the L/Rs. also. The right course for him is to explore jurisdiction for issuing a notice on the L/Rs. of Shri Keshavlal Somnath Panchal. Therefore, we set aside the orders of the ld.CIT(A) and restore the issue to the file of the CIT(A) for re-adjudication.
FULL TEXT OF THE ITAT JUDGEMENT
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-4, Ahmedabad dated 27.1.2020 passed for the Asstt.Year 2017-18.
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