CHHEDI LAL,RAEBARELI vs. INCOME TAX OFFICER, RAEBARELI

ITA 87/LKW/2025Status: DisposedITAT Lucknow30 January 2026AY 2011-12Bench: the Assessing Officer and furnished submissions. After considering the submissions and making necessary enquiries, the Assessing Officer adopted the stamp duty valuation u/s 50C of the Income-tax Act, 1961 (“Act” for short) and assessed the total income at Rs.31,95,000/. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A), who partly allowed the appeal of the assessee, thereby directed the Assessing Officer to consider the value of new residence of property at Rs.8,97,04 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the impugned order could not be sustained as it was passed against a deceased person without formal substitution of legal heirs. Citing Section 159(2a) of the Act, the Tribunal set aside the CIT(A)'s order and remanded the matter back for fresh adjudication against the legal representative. The grounds raised in the appeal were allowed for statistical purposes.

What were the facts?

The assessee filed an ITR of Rs. 1,93,000, which was subsequently reassessed at Rs. 31,95,000 by the AO under Section 50C based on stamp duty valuation. The CIT(A) partly allowed the appeal, directing the AO to consider a specific property value. Crucially, the assessee passed away during the appellate proceedings, but this was not notified to the authorities, and no legal heir substitution occurred.

What were the issues?

Whether appellate proceedings can be continued against a deceased assessee without substituting legal heirs; and issues related to property valuation under Section 50C of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 50C,Section 159(2a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “SMC”, LUCKNOW

Before: SHRI KUL BHARAT

PER KUL BHARAT, VICE PRESIDENT.: This appeal, filed by the legal heirs of the deceased assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 15.03.2024 pertaining to the assessment year 2011-12. The assessee has raised the following grounds of appeal: - “1. Ld. CIT(A) erred while not allowing the cost of improvement of land the initial amount was Rs.67,693.00 (F.Y. 97-98).

2.

Ld. CIT(A) blatantly erred while directing to take the value of

The order continues below.

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