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Facts
The assessment order was passed in the name of a deceased person, Bal Kishan, who had died prior to the issuance of the notice u/s 148. The notice was issued much after his death, and the assessment was completed ex-parte. The appeal was filed by the Legal Heir of the assessee.
Held
The Tribunal held that a notice issued under Section 148 of the Income Tax Act in the name of a predeceased assessee is invalid and cannot be validly served. Consequently, all subsequent proceedings, including the assessment order, are vitiated and unsustainable.
Key Issues
Whether assessment proceedings initiated based on a notice issued under Section 148 in the name of a deceased person are valid and sustainable.
Sections Cited
148, 142(1), 144, 147, 144B
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Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2015-16) Late Shri Bal Kishan, Through Legal Heir Lalit Kumar, C/o P Chauhan & Co. 1120, Tower-A, The I-Thum, Plot No. A-40, Sector-62, Noida, Uttar Pradesh 201301 ...... अपीलाथ�/Appellant PAN: AQEPP-2690-K बनाम Vs. Income Tax Officer, Ward-1(1), ..... �ितवादी/Respondent Faridabad, Haryana अपीलाथ� �ारा/Appellant by : Shri Pawan Chauhan, Chartered Accountant �ितवादी�ारा/Respondent by : Ms. Sudha Gupta, SR.DR सुनवाई क� ितिथ/ Date of hearing : 29/07/2025 घोषणा क� ितिथ/ Date of pronouncement : : 29/07/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)] dated 27.09.2024, for Assessment Year 2015-16.
A perusal of the appeal file shows that the assessment order dated 17.03.2022 has been passed in the name of a dead person. The present appeal has been filed by the Legal Heir of the assessee. The LR’s of the assessee has (AY 2015-16) placed on record death certificate of Bal Kishan the original assessee. As per the death certificate Bal Kishan had died on 11.04.2017.
The appellant has filed written submissions along with relevant documents. The notice u/s. 148 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) for the impugned assessment year was issued in the name of deceased Bal Kishan on 28.03.2021 i.e. much after the death of Bal Kishan. Since, there was no response from the assessee’s side to the said notice and the subsequent notices issued u/s. 142(1) of the Act, the AO completed the assessment ex-parte invoking the provisions section 144 of the Act. The assessment was made u/s. 147 r.w.s. 144 r.w.s 144B of the Act vide order dated 17.03.2022.
The Hon’ble Delhi High Court in the case Savita Kapila vs. Asst. CIT 118 taxmann.com 46 (Delhi) has held that there is no statutory obligation on the Legal Heir to intimate the death of the assessee to the Revenue. The Hon’ble Delhi High Court further held that where the notice has been issued u/s. 148 of the Act in the name of predeceased assessee, such notice could not have been validly served upon the assessee. Hence, the said notice is invalid and is liable to be quashed.
In the instant case, I find that the original assessee Bal Kishan had died on 11.04.2017, notice u/s. 148 of the Act was issued by the AO on 28.03.2021, hence, the notice was issued in the name of a dead person. The said notice was not validly severed upon the assessee, therefore, the subsequent proceedings emanating from such invalid notice are vitiated. Notice u/s. 148 of the Act in the name of a dead person and the assessment framed on the basis of said notice in the name of dead person is without jurisdiction, ergo, unsustainable.
(AY 2015-16) 6. In light of undisputed facts of the case and the decision of Hon’ble Delhi High Court referred above, impugned order is set aside and appeal is allowed. Order pronounced in the open court on Tuesday the 29th day of July, 2025.