THIRUVENKITAM VEERIAH REDDIAR,KOTTAYAM vs. DCIT, CIRCLE & TPS, KOTTAYAM

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ITA 411/COCH/2025Status: DisposedITAT Cochin31 July 2025AY 2018-2019Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI SONJOY SARMA (Judicial Member)3 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 found that the assessment order passed against a deceased person, after the assessing authority had been informed of the demise, is invalid. Consequently, the assessment order was quashed. The Tribunal clarified that the AO is at liberty to initiate fresh reassessment proceedings in accordance with law.

What were the facts?

The assessee, an individual engaged in textile trading, died on 14.01.2020. Despite the legal heirs informing the AO of the demise on 15.02.2021, the AO continued with the assessment proceedings and passed an order under Section 143(3) against the deceased assessee for AY 2018-19. The CIT(A) confirmed the AO's action, leading to the present appeal.

What were the issues?

Whether an assessment order passed against a deceased assessee, subsequent to the assessing authority being informed of the death, is legally valid.

Which sections of the Income-tax Act were involved?

Section 142(1),Section 143(3),Section 143(3A),Section 143(3B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI SONJOY SARMA, JM

For Appellant: Shri R. Krishnan, CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 05.06.2025Pronounced: 31.07.2025

O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 27.03.2025 for Assessment Year (AY) 2018-19.

2.

Brief facts of the case are that the appellant is an individual engaged in the business of wholesale trading in textile garments by running a proprietorship concern in the name of M/s. S.V.R. (Distribution). The return of income for AY 2018-10 was filed on 30.10.2018 declaring income of Rs. 3,87,80,793/- and the same was revised on 27.03.2019 at a total income of Rs. 3,91,73,730/-. Subsequently, the assessee died on 14.01.2020. However, notice u/s. Thiruvenkitam Veeriah Reddiar 142(1) of the Income Tax Act, 1961 (the Act) was issued electronically on 14.10.2020. However, the assessment was completed by the AO against the appellant vide order dated 07.04.2021 passed u/s. 143(3) r.w.s. 143(3A) & 143(3B) at a total income of Rs. 4,32,74,119/-

3.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

4.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

5.

At the outset we find that the AO was informed about the demise of the appellant by the legal heirs vide letter dated 15.02.2021 that the appellant had expired on 14.01.2020. Despite this fact the assessing authority continued to issue notice against the deceased person and passed the assessment order, which is invalid. Therefore, the assessment is quashed. However, it is open to the AO to initiate reassessment proceedings in accordance with law by following the procedure known to law.

6.

In the result, the appeal filed by the assessee stands allowed.

Order pronounced in the open court on 31st July, 2025.

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