Bharat Ranchod Vs ITO (ITAT Surat)
AO had passed assessment order u/s 144 r.w.s. 147 dated 28.12.2018 in the name of a dead person, who expired on 01.02.2015. Appellant’s key grievance was that the reassessment proceedings were initiated, & the consequent order was passed in the name of a deceased individual . Importantly, the death had been duly intimated to the Income Tax Department through letters & submission of the death certificate well before the passing of the assessment order .
Despite being informed, AO proceeded with issuing a notice u/s 148 & finalising the assessment order against the deceased. The appellant argued that such an action was fundamentally invalid, as proceedings & orders against a non-existent person are a nullity in law. In support, reliance was placed on several judicial precedents,
Upon hearing both parties, the Tribunal agreed with the appellant’s contentions. Referring to the settled legal principle upheld by the Hon’ble Supreme Court in CIT vs. Amarchand N. Shroff (48 ITR 59) wherein it was held that the individual must be a living person & no assessment can be made on a dead person. Thus allowing the appeal, Tribunal held that that assessment proceedings against a dead person are unsustainable & void from the beginning. Consequently, the ITAT quashed the assessment order.
