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LATE RAJASEKHAR CHELIKANI,HYDERABAD vs ACIT., CENTRAL CIRLCE 3(2), HYDERABAD | BharatTax

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

ITA 154/HYD/2025Status: DisposedITAT Hyderabad28 April 2025AY 2014-2015Bench: us: “1. The Learned CIT(A) erred in setting aside the assessment for fresh consideration without appreciating the fundamental fact that the original assessment was completed on a deceased person, rendering it a nullity in the eyes of law. 2. The learned CIT(A) misinterpreted the scope of powers under Section 251 of the Income Tax Act. Setting aside an invalid1 pages

AI SummaryDismissed

Facts

The assessee, Late Rajasekhar Chelikani, filed his return for AY 2011-12. Subsequently, survey proceedings were conducted, and the AO initiated reassessment proceedings under Section 147, treating a loan from a company as 'deemed dividend' under Section 2(22)(e). The assessment order was passed after the assessee's death without impleading legal heirs.

Held

The Tribunal held that assessment proceedings against a deceased person without involving legal heirs are void ab initio. The assessment order passed by the AO in the name of the deceased assessee is a nullity and cannot be sustained.

Key Issues

Whether the assessment order passed by the AO in the name of a deceased assessee, without bringing legal heirs on record, is valid in law?

Sections Cited

Section 144, Section 147, Section 2(22)(e), Section 159, Section 251

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

For Appellant: Dr. Sachin Kumar, Sr.D.R

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : Late Rajasekhar Chelikani, Legal Heir Shri Chelikani Venkata Sai Sampath Sunil Kumar, R/o.8-2-686/7, 10/A & B, Road No.12, Banjara Hills, Hyderabad – 500 034. 2. रधजस्व/ The Revenue : The Assistant Commissioner of Income Tax, Central Circle 3(2), Hyderabad.