ITAT Mumbai – Reassessment on Deceased Person Quashed; Entire Proceedings Penalties Held Void Ab Initio

Rakesh Jain Vs ITO (ITAT Mumbai) In Rakesh Jain (Legal heir of Late Bhawarlal Shrilal Jain) (AY 2013-14), the ITAT quashed reassessment proceedings initiated u/s 147 against a deceased individual despite prior intimation of death to the department. The AO had added ₹1.67 Cr u/s 69A towards cash deposits and levied multiple penalties, while CIT(A) dismissed appeals on limitation without examining merits. The Tribunal held that proceedings against a dead person are void unless initiated against legal representatives u/s 159, and such jurisdictional defect cannot be cured u/s 292B. It distingui...