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Facts
The assessee, a deceased person, had their assessment completed under section 143(3). The legal heir had informed the AO about the assessee's death and provided relevant documents. Despite this, the AO proceeded with the assessment without bringing the legal heirs on record.
Held
The Tribunal held that the assessment proceedings initiated against a deceased person without impleading the legal heirs are bad in law. The AO ought to have dropped the proceedings or continued them in the name of the legal representative.
Key Issues
Whether assessment proceedings against a deceased person are valid if legal heirs are not brought on record?
Sections Cited
143(3), 69A, 143(2), 142(1)
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Before: Shri M. Balaganesh & Shri S.S. Viswanethra Ravi
Year: 2017-18 Late Sitthagounder Rasu by L/R. R. Vs. The Income Tax Officer, Kumaresan, 693, Kuthiraikalmedu, Ward 1(4), Kadappanallur Post, Bhavani, Erode. Tamil Nadu 638 311. [PAN:BDRPS0224H] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri Lakshmi Venkataraman, F.C.A. (Virtual) ��थ� की ओर से/Respondent by : Shri C.P. Solomon, JCIT सुनवाई की तारीख/ Date of hearing : 23.10.2025 घोषणा की तारीख /Date of Pronouncement : 28.10.2025 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 30.07.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18.
In the grounds of appeal, besides challenging the assessment made on a deceased person is bad in law and not legally sustainable on merits, the assessee also challenged confirmation of addition made under section 69A of the Income Tax Act, 1961 [“Act” in short].
3. At the outset, the ld. AR Shri T.S. Lakshmi Venkataraman, FCA submits that the assessment was completed under section 143(3) of the Act dated 10.12.2019 on a deceased person. He drew our attention to first para of the assessment order and submits that the legal heir of the assessee informed the Assessing Officer vide letter dated 24.06.2019 that his father (assessee) expired on 21.12.2018 and filed death certificate of the deceased assessee besides filing NOC from other legal heirs by letter dated 13.09.2019. He vehemently argued that having possession of the above documents, the Assessing Officer should have brought the legal heirs on record and should have dropped the proceedings initiated against the deceased assessee in as much as the proceedings cannot be continued on a deceased person. By relying on the decisions of the Hon’ble Supreme Court in the case of CIT v. Amarchand N. Shroff [1963] 48 ITR 59 as well as the decision in the case of CIT v. Shantilal C. Mehta [1978] 113 ITR 79 (Cal), the ld. AR argued on the death of an assessee, his estate remains liable for payment of taxes accruing both before and after his death and moreover, after the death of the assessee, the assessment proceedings can only continue in the name of his legal representative and prayed to quash the assessment.
The ld. DR Shri C.P. Solomon, JCIT submits that the legal heir of the deceased assessee appeared in the assessment proceedings and therefore, the arguments of the ld. AR cannot be entertained.
We have heard both the parties and perused the material available on record. The assessee is an individual and filed his return of income on 19.12.2017 admitting an income of ₹.8,15,150/-. The case was selected for scrutiny under CASS to verify the cash deposited during the year. We note that the notice under section 143(2) of the Act was issued on 15.08.2018 and served on the assessee. Notice under section 142(1) of the Act was also issued on the assessee calling for details. It is an admitted fact that the assessee expired on 21.12.2018 and along with death certificate, the assessee’s legal heir informed the same to the Assessing Officer vide his letter 24.06.2019, which is placed at enclosure- 1 of the written submissions besides filing NOC from other legal heirs by letter dated 13.09.2019. However, on perusal of the assessment order, we note that having possession of the above documents, the Assessing Officer failed to bring the legal heirs on record and should have dropped the proceedings initiated against the deceased assessee, in as much as, the proceedings should have continued in the name of assessee’s legal representative. Under the above facts and circumstances as well as in view of the case law relied on by the ld. AR, we are of the opinion that the assessment order passed by the Assessing Officer under section 143(3) of the Act dated 10.12.2019 is bad in law and not legally valid. Accordingly, the assessment order is quashed. Since we have quashed the assessment order and allowed ground No. 2 raised in the grounds of appeal, ground Nos. 3 to 8 raised on merits with regard to the addition made under section 69A of the Act become academic.
In the result, the appeal filed by the assessee is allowed. Order pronounced on 28th October, 2025 at Chennai.