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Facts
A notice under Section 148 of the Income Tax Act was issued to a deceased assessee, Vijay Garg, who passed away before the notice was issued. The assessee's legal heir filed the appeal, contending that the reassessment proceedings were vitiated as they were initiated in the name of a deceased person. The NFAC had not considered this crucial fact.
Held
The Tribunal held that the reassessment proceedings initiated in the name of the deceased assessee were void ab initio. The failure of the NFAC to consider the facts in the correct perspective and its denial to condone the delay was also noted.
Key Issues
Whether reassessment proceedings initiated in the name of a deceased assessee are valid and if the NFAC properly considered the facts regarding the assessee's death.
Sections Cited
147, 144, 144B, 148
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Income Tax Appellate Tribunal, DELHI BENCHES: A : NEW DELHI
Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMA
Assessment Year: 2014-15 Vijay Garg, Vs ITO, 96, Raju Ki Kuiya, Ward-1(2)(4), Near Lala Ka Bazar, Meerut. Meerut – 250 002. PAN: AJZPG0246Q (Appellant) (Respondent) Assessee by : Shri M.P. Rastogi, Advocate Revenue by : Shri Ajay Kumar Arora, Sr. DR Date of Hearing : 08.09.2025 Date of Pronouncement : 24.09.2025 ORDER
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the Assessee against the order dated 21.02.2025 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the ld. First Appellate Authority or ‘the Ld. FAA’ for short) in Appeal No.NFAC/2013-14/10164051 arising out of the appeal before it against the order dated 23.03.2022 passed u/s 147 r.w.s. 144 r.w.s.144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward- 1(2)(4), Meerut (hereinafter referred to as the Ld. AO).
On hearing both the sides, we find that a notice u/s 148 of the Act was issued on 30.03.2021 in the name of Vijay Garg, the assessee, now represented by Shri Saurabh Agarwal, Legal Heir, who has filed the appeal. The case of assessee is that Shri Vijay Garg died on 10.10.2012, i.e., well before the issuance of notice u/s 148 of the Act. Consequently, the reassessment so framed in the name of the deceased Vijay Garg is vitiated and has to be considered as non est in law. Admittedly, the notice was issued in the name of the deceased only and not in the name of any legal heir. It comes up that when this reassessment order was challenged before the ld.CIT(A), the NFAC had merely examined the issue of late filing of the appeal.
On consideration of the impugned order, we find that the fact of death of the assessee was brought to the knowledge in the statement of facts filed in Form 35. However, the NFAC has considered the fact of deposit of cash in the bank post demise of the assessee and, thus, did not accept the plea of lack of knowledge of the LRs about the assessment proceedings. The ld. AR has submitted that Shri Vijay Garg had died and the business he was carrying on was run thereafter by some other persons to whom the business was assigned. However, the name of Vijay Garg continued to be the in the bank account.
In any case, on the basis of the aforesaid facts, it is submitted that the impugned notice and subsequent proceedings of reassessment were all in the name of the deceased person which vitiated the assumption of jurisdiction and passing of the impugned assessment order. The NFAC has failed to consider the facts in correct perspective while denying to condone the delay.