Late Smt. Vasantiben Manubhai Joshi Vs ITO (ITAT Surat)
Summary: ITAT Surat allowed the appeal of Late Smt. Vasantiben Manubhai Joshi for AY 2011-12 and quashed the assessment framed under Sections 144 read with 147 of the Income-tax Act, 1961. The assessee had died on 24.01.2016, whereas the Assessing Officer issued notice under Section 148 in her name on 28.03.2018. Her husband informed the Assessing Officer about her death on 30.11.2018 and objected to continuation of the reassessment proceedings, but the objection was rejected and an ex-parte assessment was completed on 12.12.2018 determining total income at Rs. 56,13,148/-. Before the Tribunal, the legal heir challenged the validity of the Section 148 notice and, without prejudice, the additions of Rs. 55,34,660/- towards unexplained investment in fixed deposits and Rs. 78,488/- towards unexplained interest. Relying upon the decisions including Bhupendra Bhikhalal Desai, Chandreshbhai Jayantibhai Patel, Savita Kapila, Alamelu Veerappan, N. Binoj and Deputy Commissioner of Income-tax Vs. Pranav Gupta, and considering Section 159 of the Act, the Tribunal held that a notice issued under Section 148 to a deceased person was not a valid notice. The Tribunal noted that Section 159(2)(a) concerns proceedings initiated against the deceased during his or her lifetime, while Section 159(2)(b) permits proceedings that could have been taken against the deceased to be taken against the legal representative; in the present case, however, the Assessing Officer issued the notice in the deceased assessee’s name after her death and thereafter continued proceedings against the legal heir. The Tribunal held that this course was not permissible. It accordingly quashed the assessment order and allowed Ground No. 1. Since the assessment itself was quashed, the Tribunal did not adjudicate the remaining grounds relating to the additions, leaving them open and undecided.
