ACIT Vs Fakhruddin Taiyebali Padaria (ITAT Mumbai)
ITAT Mumbai held that once the assessee is dead no valid assessment or reassessment can be made in the name of the deceased. Thus, notice issued u/s. 148 upon the deceased assessee who expired prior to issuance of notice is invalid.
Facts- The assessee was a doctor by profession and followed cash system of accounting. The case of the assessee was subjected to scrutiny assessment. AO treated the cash deposit of Rs. 1,66,73,150/- as unexplained cash u/s 69A of the Act and added to the total income of the assessee.
CIT(A) has allowed the appeal of the assessee holding that notice issued u/s 148 of the Act was invalid, since the same had been issued upon the assessee who had expired prior to the issue of such notice. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the notice u/s 148 of the Act has been issued upon the deceased assessee who had expired prior to the issuance of such notice therefore, the notice issued against the deceased assessee is invalid. Once the assessee is dead no valid assessment or reassessment can be made in the name of the deceased. Hon’ble Gujarat High Court in the case of Chandreshbhai Jayantibhai Patel vs Income Tax Officer held that proceeding initiated by the assessing officer against the deceased assessee are not tenable in the eyes of law and are required to be quashed and set aside. Thus, held that we do not find any reason to interfere in the findings of the ld. CIT(A), therefore, the appeal filed by the Revenue is dismissed.
