LATE SMT. KAMLADEVI SHIVDAS DAGA,MUMBAI vs. ITO WARD 24(2)(3), MUMBAI

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ITA 1199/MUM/2020Status: DisposedITAT Mumbai25 July 2022AY 2014-153 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 completing an assessment in the name of a deceased person without impleading the legal heirs is legally untenable. The assessment framed in the hands of the deceased person was quashed.

What were the facts?

The assessment was framed in the name of a deceased assessee, Smt. Kamladevi Shivdas Daga, who passed away before the assessment was completed. The Assessing Officer was aware of the death and the filing of the death certificate but proceeded to complete the assessment without impleading the legal heirs.

What were the issues?

The primary issue was the validity of an assessment framed in the name of a deceased person without impleading legal heirs.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, ‘SMC‘ BENCH

Before: SHRI M.BALAGANESH & SHRI RAHUL CHAUDHARYShri Om Prakash Shivdas

For Appellant: Shri Ketan Vajani
For Respondent: Shri Rajiv Singh
Hearing: 25/07/2022Pronounced: 25/07/2022

आदेश / O R D E R PER M. BALAGANESH (A.M):

1.

This appeal in A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-36, Mumbai in appeal No.CIT(A),Mumbai-36/11450/2016-17 dated 05/12/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/12/2016 by the ld. Income Tax Officer- 24(2)(3), Mumbai (hereinafter referred to as ld. AO).

2.

At the outset, we find that assessee had raised an additional ground stating that assessment has been framed in the name of deceased person. Accordingly, the assessee has challenged the validity of the assessment framed per se in the name of deceased person.

3.

We have heard rival submissions and perused the materials available on record. We find that assessee Late Smt. Kamladevi Shivdas Daga passed away on 22/05/2015 which fact is evident from the death certificate filed in page 1 of the paper book. In fact, this death certificate was also filed before the ld. AO during the course of assessment proceedings by the ld. AR. Moreover, we find that the fact of expiry of assessee during the course of assessment proceedings and the ld. AR filing the death certificate thereon is also duly acknowledged by the ld. AO in page 1, para 1 of his assessment order. Having come to know that the assessee had died, the ld. AO proceeded to complete the assessment without impleading the legal heirs on record. Ultimately, the assessment was framed in the name of deceased person u/s.143(3) of the Act by the ld. AO. This, in our considered opinion is legally not tenable as it is the duty of the ld. AO to implead the legal heirs on record once he comes to know that assessee has died. Reliance in this regard is placed on the following decisions:- i) Decision of Hon’ble Bombay High Court in the case of Rupa Shyamsundar Dhumatkar vs. ACIT reported in 420 ITR 256(Bom) ii) Decision of Hon’ble Madras High Court in the case of Alamelu Veerappan vs. ITO reported in 256 Taxman 72 (Mad)

3.1. Hence, we have no hesitation in quashing the entire assessment framed in the hands of the deceased person. Since the fact of expiry of assessee is already on record before the ld. AO, the additional ground raised by the assessee before us is admitted and hereby allowed. Since, the entire assessment is quashed on technical ground, the adjudication of other grounds becomes academic in nature and they are left open.

4.

In the result, appeal of the assessee is allowed.

Order pronounced in open Court on 25/07/2022

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