SH. RISHI PAL L/H OF LATE SH. INDER SINGH,NEW DELHI vs. PR. CIT, KARNAL

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ITA 3385/DEL/2017Status: DisposedITAT Delhi13 July 2022AY 2007-082 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that an assessment order passed against a dead person is legally invalid. Consequently, any subsequent proceedings, including those under Section 263, initiated based on such an invalid order are also invalid and liable to be quashed.

What were the facts?

The assessment order under Section 148/143(3) was passed against a deceased individual, Sh. Inder Singh, who had expired prior to the assessment proceedings. The Principal Commissioner of Income Tax initiated proceedings under Section 263 against this assessment order.

What were the issues?

The primary issue was the validity of an assessment order passed against a deceased assessee and the subsequent proceedings under Section 263 based on that order.

Which sections of the Income-tax Act were involved?

Section 148,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI

Before: Sh. Saktijit DeyDr. B. R. R. Kumar

Hearing: 04.07.2022Pronounced: 13.07.2022

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of ld. PCIT, Karnal dated 27.03.2017 passed u/s 263 of the Income Tax Act, 1961.

2.

Apropos, the issues raised before us, the pertinent facts are as under:

• 25.02.2014 - Notice u/s 148 was issued by the Deputy Commissioner of Income Tax, Panipat Circle, Panipat. • 09.04.2014 - Notice u/s 142(1) was issued by the Deputy Commissioner of Income Tax, Panipat Circle, Panipat. • 16.09.2014 - Notice u/s 142(1) was issued by the Assistant Commissioner of Income Tax, Panipat Circle, Panipat. • 02.01.2015 - Notice u/s 142(1) was issued by the Income Tax Officer, Ward-2, Panipat.

2 Rishi Pal • 07.02.2015 - Notice u/s 142(1) issued by the Income Tax Officer, Ward-2, Panipat. • 23.05.2015 – The assessee filed return in the name of Rishi Pal L/H of Inder Singh. • 25.02.2015 – The assessee filed copy of death certificate copy of bank statement, copy of the Income Tax Return, copy of death certificate, computation of capital gains before the ITO, Ward-2, Panipat. • 25.02.2015 – Assessment Order u/s 148/143(3) passed by ITO, Ward-2, Panipat. The said order mentions that the assessee has not filed any return of income for the year under consideration and has not paid any tax on capital gain.

3.

The aforesaid Assessment Order has been passed in the name of “Sh. Inder Singh” S/o Bija, Vill.- Chandoli, Panipat who has expired on 26.11.2012. In other words, the Assessment Order which has been subjected to proceeding u/s 263 of the Act was passed against a dead person. Hence, the order passed u/s 148/143(3) is legally invalid. Accordingly, the order passed u/s 263 against a legally invalid order is also invalid, hence, liable to be quashed.

4.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 13/07/2022.

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