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Facts
The assessee's appeal arises from an order passed by the CIT(A), which in turn arose from an assessment order passed by the AO. The core issue is that the assessment order for AY 2011-12 was passed in the name of a deceased person, Shri Govan Morab Ranchod, who expired on 01.02.2015.
Held
The Tribunal held that an assessment order passed in the name of a deceased person is a nullity and void ab initio. This is based on established legal principles and the Supreme Court's decision in CIT vs. Amarchand N. Shroff.
Key Issues
Whether the assessment order passed in the name of a deceased person is valid in the eyes of law.
Sections Cited
Section 250 of the Income-tax Act, 1961, Section 144 of the Income-tax Act, 1961, Section 147 of the Income-tax Act, 1961, Section 148 of the Income-tax Act, 1961
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Before: SHRI PAWAN SINGH & SHRI BIJAYANANDA PRUSETH
आदेश / O R D E R
PER BIJAYANANDA PRUSETH, AM:
This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 14.11.2024 by the Commissioner of Income-tax(Appeals)-4, Ahmedabad [in short ‘the CIT(A)’] for the assessment year (AY) 2011-12, which in turn arises out of assessment order passed by Assessing Officer (in short ‘AO’) u/s 144 r.w.s. 147 of the Act dated 28.12.2018. Grounds of appeal
raised by the assessee are as under:
1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in not adjudicating the ground of assessee on validity of assessment that the learned Assessing Officer has wrongly re- /AY.11-12 Bharat Ranchod l/h Govan M Ranchod opened the assessment u/s 147 by issuing notice u/s 148 of the Act in the name of deceased person and therefore, the initiation of reassessment proceeding and consequential order passed u/s 147 r.w.s.144 are bad in law and void ab initio.
2. It is therefore prayed that the assessment framed u/s 147 r.w.s. 144 may kindly be quashed and/or the addition made by Assessing Officer may please be deleted.
3. The appellant craves leave to add, amend, alter, delete or modify all or any of the grounds before or during the course of final hearing of appeal.”
2. At the outset, the Ld. Authorized Representative (Ld.AR) of the assessee submitted that the impugned assessment order u/s 144 r.w.s. 147 of the Act dated 28.12.2018 was passed in the name of a dead person, Shri Govan Morab Ranchod, who expired on 01.02.2015. The Ld. AR has filed a paper book enclosing therein the Certificate of Death issued on 18.02.2015. The Ld. AR has also enclosed copy of the letter addressed to the ITO, Ward-2, Navsari informing him about the death of Govan Morab Ranchod (assessee). Copy of the said letter is at page 2 and 3 of the paper book. The assessee again informed the AO about the death of assessee vide letter dated 01.12.2017, which is at page 4 and 5 of the paper book. Despite having the above information, the AO has passed order in the name of dead person which is a nullity in the eyes of law. The Ld. AR relied on various decisions including decision of the co-ordinate Bench of this Tribunal in the case of Chandravadan Shah L/h Chhottalal Tarachand Shah in dated 06.11.2024 where appeal of assessee was allowed by holding that the order passed in the “6. … …. There is no dispute that both AO and CIT(A) have passed orders on a dead person, which is nullity and void ab initio. The Hon’ble Supreme Court in the case of CIT vs. Amarchand N. Shroff, 48 ITR 59 (SC) has held that the individual must be a living person and no assessment can be made on a dead person. Various appellate fora have also held that no order of assessment or reassessment could be made on a dead or non-existing person. Hence, the order passed b t he Ld.CIT(A) is a nullity in the eyes of law. Hence, the same is quashed and appeal of the assessee is allowed.” 2.1 In view of the facts discussed above and following the decision cited supra, appeal of assessee is allowed.