Hyderabad ITAT Quashes Assessment on Dead Person – Participation by Legal Heir Cannot Cure Jurisdictional Defect

Krishna Swamy Vs ITO (ITAT Hyderabad) The Hyderabad ITAT quashed the entire assessment proceedings after holding that notices u/s 143(2) and 142(1), as well as the final assessment order u/s 143(3), were issued in the name of a deceased assessee despite the department being fully aware of the death. The Tribunal held that once the return itself was filed by the legal heir, the department could not continue proceedings against a non-existent person. Rejecting the Revenue’s argument that the AO had mentioned the death of the assessee in the body of the assessment order, the ITAT observed that ...