I.T.O WD - 54(4),KOLKATA, KOLKATA vs. SMT INDRANI CHATTERJEE (DECASED) L/H,SOUMITRA MOOKHERJEE, KOLKATA

This appeal by revenue is arising out of order of CIT(A)-XXXVI, Kolkata vide Appeal No. 599/CIT(A)-XXXVI/Kol/37/Wd-54(4)/10-11 dated 17.12.2012. Assessment was framed by ITO, Wd-54(4), Kolkata u/s. 147/144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2005-06 vide his order dated 31.12.2010.

At the outset, Ld. Counsel for the assessee stated that the assessment was framed on a dead person and this fact is recorded by AO in his assessment order at page 1 last para, which reads as under: “As per Inspector’s report it revealed that Smt. Indrani Chatterjee, the assessee, has died long before and the said property i.e. flat no. A-202, 7/1A, Sunny Park, Kolkata-19 is now under the possession of Sri Soumitra Mukherjee, stated to be the nephew of the deceased, now living at Delhi.”

According to Ld. Counsel, the assessment was framed u/s. 147/144 of the Act dated 31.12.2010 but the assessee died on 05.04.2009. According to him, this assessment has rightly been quashed by CIT(A) on this ground also. When this fact was referred to Ld. Sr. DR, he relied on the assessment order only. 4. We have heard rival submissions and gone through facts and circumstances of the case. We find that the assessee Indrani Chatterjee died on 05.04.2009 and assessment was framed on a dead person and legal heirs are not brought on record by substituting in term of section 159 of the Act. Once this is the position the assessment is to be made in the hands of late Indrani Smt. Indrani Chatterjee, AY 2005-06 Chattejee although through legal heirs by adopting the procedure prescribed u/s. 159 of the Act. The AO has not gone into this aspect despite the fact that he was informed that assessee Late Indrani Chatterjee has already expired on 05.04.2009 during the pendency of this assessment proceedings. In term of the facts and circumstances, the assessment of the deceased person can be assessed by adopting the procedure prescribed u/s.159 of the Act. The revenue, if law permits, can take action on legal heirs to make the assessment after adopting the procedure prescribed u/s. 159 of the Act. Accordingly, this legal issue is deciding in favour of the assessee and the appeal of revenue is dismissed.

In the result, appeal of revenue is dismissed. Order pronounced in the open court.