Smt. Chanda Shreeram Singh Vs ITO (ITAT, Mumbai Bench)
A Notice Issued Two Days After Death Cannot Expect a Reply From the Deceased: CIT(A)’s Order Against Dead Assessee Held Null & Void – 442-Day Delay Condoned
Summary: The appeal arose from the assessment of capital gains on the sale of immovable property belonging to Late Shri Shreeram Rekhai Prasad Singh.
The AO treated the gain as short-term capital gain and computed it without allowing indexed cost of acquisition. He also invoked section 50C and adopted the stamp-duty value of ₹39,47,000 as against the actual sale consideration of ₹28,09,000, resulting in a difference of ₹11,38,000.
The assessee contended that part of the sale consideration had been received on 02.11.2012, whereas the property was registered only on 12.07.2016. Therefore, the stamp-duty value prevailing on the earlier agreement or payment date ought to have been considered by applying the first and second provisos to section 50C.
The assessment was challenged before the CIT(A). However, the CIT(A) dismissed the appeal in limine as not maintainable u/s 249(4)(b) on the ground that the assessee had not filed a return of income and had not paid an amount equal to the advance tax payable.
The matter eventually reached the Tribunal through the deceased assessee’s wife and legal heir, Smt. Chanda Shreeram Singh, with a delay of 442 days.
