DWARAMPUDI KRSS SUBBIREDDY L/R OF DWARAMPUDI RAMAKRISHNA REDDY,EAST GODAVARI DIST vs. INCOME TAX OFFICER, WARD-2, KAKINADA

Facts

The assessee, Shri Dwarampudi Ramakrishna Reddy, who made cash deposits during the demonetization period, died on 13.06.2018, during the assessment proceedings for A.Y. 2017-18. Despite being informed of the assessee's death, the AO passed an assessment order under Section 144 on 21.12.2019 in the name of the deceased. The CIT(A) subsequently upheld this order. The present appeal to the Tribunal was filed by a legal representative after the initial legal representative also passed away, leading to a delay that was condoned by the Tribunal.

Held

The Tribunal held that the assessment order passed by the AO under Section 144 and subsequently confirmed by the CIT(A) in the name of a deceased assessee, after his death, is a nullity. Citing Section 159 of the Income Tax Act and a High Court judgment, the Tribunal found the orders fundamentally defective. The matter was remanded to the AO to frame a fresh assessment after impleading the legal heirs of the deceased assessee.

Key Issues

Whether an assessment order passed by the Assessing Officer and subsequently confirmed by the CIT(A) in the name of an assessee who had already expired prior to the assessment order, is sustainable in law.