DCIT, MUMBAI vs. LATA MAHIPATRAY SHAH, MUMBAI

The present appeal filed by the Revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, under section 250 of the Income- tax Act, 1961 (‘the Act’), for the assessment year 2018-19. The assessment in the present case was completed under section 153C read with section 144 of the Act vide order dated 29.09.2021.

The Revenue has challenged the deletion of addition of Rs.30,55,60,743 made under section 68 of the Act on account of alleged bogus long-term capital gains and the consequential addition of Rs.91,31,212 made under section 69C of the Act. The respondent- assessee has also filed the captioned Cross Objection raising various legal grounds against the validity of the assessment.

During the course of hearing, it was brought to our notice that the respondent-assessee, Smt. Lata Mahipatray Shah, had expired on 18.12.2018, whereas the Revenue has instituted the present appeal against the deceased person. The record further shows that, on 10.02.2026, the Department was specifically directed to bring the legal heir of the deceased respondent on record and to file a revised Form No. 36. However, the legal heir has not been brought on record and the appeal continues to remain instituted against the deceased respondent.

An appeal filed against a person who was not alive on the date of its institution cannot be maintained against such deceased person. In the absence of the legal representative having been impleaded despite opportunity, the present appeal is not maintainable. We, therefore, dismiss the appeal filed by the Revenue as not maintainable. However,

The Cross Objection filed by the assessee arises out of the aforesaid appeal of the Revenue. Since the Revenue’s appeal itself has been dismissed as not maintainable, the Cross Objection has no independent locus and does not survive for adjudication. Accordingly, the Cross Objection is also dismissed.

In the result, the appeal filed by the Revenue and the Cross Objection filed by the assessee are dismissed in the terms indicated above.