LATE SHRI NARESH MOHAN DAGA THROUGH LEGAL HEIR SHRI AKSHAT DAGA,GHAZIABAD vs. WARD 2(2)(1) GHAZIABAD, GHAZIABAD

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ITA 7294/DEL/2026Status: DisposedITAT Delhi22 September 2026AY 2011-123 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that reassessment proceedings initiated against a deceased assessee without proper notification or legal representation are not sustainable in law. The Tribunal relied on the jurisdictional High Court's decision in Savita Kapila Vs. ACIT.

What were the facts?

The assessee passed away on December 23, 2016. However, the Assessing Officer initiated reassessment proceedings under section 147/148 against the deceased assessee via a notice dated March 26, 2018.

What were the issues?

The primary issue was the validity of reassessment proceedings initiated against a deceased assessee. The secondary issue was whether the legal representative's failure to inform the department of the death invalidated the proceedings.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 18.08.2026Pronounced: 18.08.2026

PER SATBEER SINGH GODARA, JM:

This appellant’s appeal ITA Nos. 7294/Del/2026 for assessment year 2011-12 arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s order dated 17.11.2025, having DIN and order no. ITBA/NFAC/S/250/2025-26/1082677295(1),

ITA No.7294/Del/2026

involving proceedings under section 147 r.w.s. 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties at length. Case file perused.

2.

Coming to the appellant/alleged legal representative’s appeal herein, we note at the outset that there arises the first and foremost issue of validity of the impugned reopening itself as the assessee appears to have left for heavenly abode on 23.12.2016 whereas, the learned CIT(A)/NFAC has upheld the Assessing Officer’s action setting into motion section 148/147 proceedings against him vide notice dated 26.03.2018.

3.

Faced with this situation, learned departmental representative vehemently argues that it was indeed incumbent for the assessee’s alleged legal representative (including the appellant herein) to inform about his death to the departmental authorities. We find no merit in the Revenue’s stand as hon’ble jurisdictional high court in Savita Kapila Vs. ACIT (2020) 118 taxmann.com 46 (Delhi) has already settled the issue in appellant’s favour and against the department that even if the learned field authorities are not informed, such a reopening is not sustainable in law. The same 2 | P a g e

ITA No.7294/Del/2026

stands quashed in very terms therefore. The appellant’s appeal ITA No. 7294/Del/2026 is hereby allowed.

It is to make clear before parting that I have not commented anything on the appellant’s status as legal representative of the deceased assessee at this stage subject to all just exceptions.

4.

This appellant’s appeal is allowed. Order pronounced in the open court on 18th August, 2026.

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 22.09.2026 Pooja Mitta, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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