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Facts
The assessee's appeal pertains to the assessment year 2020-21. The proprietor of the business, Shri Nirantar Kumar Dhupar, passed away on 23.05.2021, leaving behind his widow, the present assessee, and two sons. The income tax demand was raised u/s 143(1) of the Income Tax Act, 1961.
Held
The Tribunal found that the assessment and the CIT(A)'s order were made on the deceased assessee. There was no finding regarding the appointment of the legal representative or her possession of assets. Therefore, the issue was set aside to the Assessing Officer for fresh adjudication.
Key Issues
Whether the assessment proceedings were validly initiated against the deceased assessee without establishing the legal representative's status and assets. The need for fresh adjudication on this legal issue by the Assessing Officer.
Sections Cited
142(1), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘G’ BENCH,
Before: SHRI SATBEER SINGH GODARA, & SHRI NAVEEN CHANDRA
This appeal by the assessee is directed against the order of the ACIT, A-2 Mumbai dated 28.01.2025 pertaining to A.Y 2020-21.
Brief facts of the case are that Shri Nirantar Kumar Dhupar, who was solely handling the functioning and operations of M/s Plastic Component Industries had expired on 23.05.2021. Copy of death certificate has been furnished on record. Assessment was made on
At the very outset, the ld. counsel for the assessee submitted that consequent to the death of the proprietor, the family members were under grief and great pain and loss and unaware of the way to handle and operate the said firm. The assessee sought to further add more grounds of appeal in support of her claim for relief from additional demand for the Assessment Year under consideration.
The ld. counsel for the assessee further submitted that the then Proprietor of Late Sh. Nirantar Kumar Dhupar (M/s Plastic Component Industries) who was solely handling the functioning and operations of M/s Plastic Component Industries had expired on 23.05.2021 after prolonged fight with the COVID-19 pandemic leaving behind his widow, the present assessee and two young and studying sons. The assessee prayed for relief from the income tax demand raised u/s 143(1) of Income Tax Act, 1961 for A.Y. 2020-21.
The ld. DR relied on the order of the ld. CIT(A).
We have heard the rival submissions and have perused the relevant material on record. We find that the processing of return u/s 142(1) of the Act as well as the ld. CIT(A)’s order has been made on the deceased assessee. However, we also find that there is no finding by the Assessing Officer as to the fact of appointment of Jyoti Dhupar being appointed as legal representative of the assessee as also whether the legal representative has been bestowed with assets of the deceased person.
We are, therefore, of the considered view that the issue may be set aside to the file of the Assessing Officer to decide this legal issue afresh and to decide on making assessment on the legal representative of the deceased person.
The Assessing Officer is directed to decide the appeal afresh 7. after affording a reasonable and adequate opportunity of being heard to the L/R of the assessee and considering the evidences/material furnished by her. The L/R of the assessee is directed to cooperate with the proceedings and furnish documents/evidence as required by the Assessing Officer.
Page 3 of 5 allowed for statistical purposes.
Order pronounced in open court on 29.10.2025.