LATE M.P.VIMALA BAI, REP. BY L/R. M.P.JAY ANANTHA SWAMY.,HYDERABAD vs. INCOME TAX OFFICER-WARD-11(2), HYDERABAD

At the time of hearing, Ld.AR brought to our notice that notice u/s.148 of the Income Tax Act [Act] dt.30-03-2010 was issued and served on the assessee. Shri M.P.Jay Anantha Swamy is the legal representative, appeared before the Assessing Officer (AO) and submitted that assessee has expired on 12-12-2010 and filed Death Certificate also. Subsequently, the AO issued several notices u/s.143(2) of the Act on 13-04-2010 and notice u/s. 142(1) of the Act on 02-02- 2011, 24-06-2011 & 26-09-2011. Even though the Legal Representative of the assessee filed Power of Attorney (POA) dt.19-04-2010 and other relevant information before the AO confirming the death of assessee, AO has passed the assessment order on the deceased person, which is not valid. In this connection, he relied on the decision of Hon'ble Supreme Court in the case of Pr.CIT Vs. Maruti Suzuki India Limited (Successor of SPIL). With regard to merits of the case, Ld.AR brought to our notice that the property-in-question was sold for a consideration of Rs.33 Lakhs but the property is a commercial property situated at Mahankali Street, was occupied by old tenants for a period of more than 40 years, paying meagre rents; there were also court cases pending against them for eviction of same and the property was disputed property as the tenants were not vacating and having prolonged cases for the years together. Therefore, this property was sold under distress but AO has invoked Section 50C of the Act on this property. For that proposition, Ld.AR relied on the

On the other hand, Ld.DR relied on the orders of Revenue authorities.

Considered the rival submissions and material on record. It was brought out by the Ld.AR that notice u/s.148 of the Act was issued to assessee after the expiry of time. The Ld.Representative of the assessee submitted the Death Certificate and other relevant information, confirming that assessee was no more and Ld.AR has submitted the POA and claimed that he is the Legal Representative of the assessee. Inspite of that, AO issued various notices in the name of the deceased assessee and completed the assessment also in the name of the deceased assessee. Therefore, the assessment made by AO on the deceased person is not valid. In support of that, we rely on the decision of Hon'ble Supreme Court in the case of Pr.CIT Vs. Maruti Suzuki India Limited (Successor of SPIL).

In the result, the appeal of assessee is allowed. Order pronounced in the open court on 5th September, 2019