Penalty u/s 271(1)(b) on Dead Person Invalid – ITAT Rajkot Cites Fundamental Illegality

Dhirajlal Nathubhai Bhut Vs ITO (ITAT Rajkot) Appeal was filed against CIT(A), NFAC order dated 25.11.2024, which had confirmed a penalty u/s 271(1)(b) of ₹70,000 for alleged non-compliance with notices. Appeal was delayed by 230 days, but Tribunal condoned the delay, accepting Assessee’s explanation of genuine hardship. Assessee contended that the penalty proceedings were invalid since Assessee had already died, &  AO issued notices &  passed the penalty order in the deceased’s name, despite being informed of his death. Department nonetheless continued proceedings without brin...