MANOJ DALMIA L/H OF LATE SH. BANWARI LAL DALMIA,NEW DELHI vs. DCIT, CENTRAL CIRCLE-31, DELHI

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ITA 757/DEL/2023Status: DisposedITAT Delhi11 July 2023AY 2019-202 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that an assessment order passed in the name of a deceased person, without properly bringing the legal heir on record, is null and void.

What were the facts?

The assessee died before the assessment proceedings were completed. The L/H informed the AO about the death, but the assessment was completed in the name of the deceased assessee.

What were the issues?

Whether an assessment order passed in the name of a deceased assessee is valid when the legal heir has been intimated about the death.

Which sections of the Income-tax Act were involved?

Section 159(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Sh. C. M. GargDr. B. R. R. Kumar

Hearing: 10.07.2023Pronounced: 11.07.2023

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by assessee against the order of ld. CIT(A)-30, New Delhi dated 19.01.2023.

2.

The undisputed facts are as under:

 Date of action u/s 132 – 31.10.2018  Date of death of assessee – 28.04.2019  Date of filing of return in the name of the assessee – 31.08.2019.  Date of issue of notice u/s 153A – 29.09.2020  Date of intimation to the AO about the death of the assessee by L/H – 15.12.2020  The assessment was completed in the name of the deceased assessee – 27.03.2021

Manoj Dalmia 3. At the outset, the ld. DR, Shri Paresh Johri vehemently argued that inspite of the death of the assessee, the return has been filed in the name of the assessee and hence, the Assessing Officer has rightly passed order in the name of the assessee. It was argued that the notice u/s 143(2) has also been rightly issued in the name of the assessee and consequently the assessment completed cannot be treated as void.

4.

We find that the L/H has intimated the AO on 23.12.2020 about the death of the assessee. While the AO has invoked the provisions of Section 159(1) but failed to bring the L/H on record and completed the assessment in the name of the deceased person.

5.

Under these facts, we hold that the Assessment Order passed in the name of deceased person is null and void.

6.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 11/07/2023.

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