LATE RAJASEKHAR CHELIKANI,HYDERABAD vs. ACIT., CENTRAL CIRCLE-3(2), HYDERABAD

Facts

The assessment was completed in the name of a deceased assessee, who had expired before the assessment order was passed. The legal heirs claimed that the assessment was a nullity as it was made against a dead person without following the provisions of Section 159 of the Income Tax Act.

Held

The Tribunal held that the assessment order passed against a deceased person without impleading the legal heirs and without following the procedures under Section 159 of the Income Tax Act is a nullity and cannot be sustained. The appeals were accordingly allowed in terms of setting aside the assessment.

Key Issues

Whether the assessment framed in the name of a deceased assessee without impleading legal heirs and without following Section 159 of the Income Tax Act is valid.