Assessment Order Not Void Solely Because It Was Passed in Deceased's Name: ITAT Chandigarh
The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, recently held that an appellate order passed by the Commissioner of Income Tax (CIT), reassessing the income tax liability of an assessee, is not invalid merely because it was issued in the name of a deceased person. The Tribunal noted that since the appeal itself was filed under the deceased's name, the order cannot be quashed on...
The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, recently held that an appellate order passed by the Commissioner of Income Tax (CIT), reassessing the income tax liability of an assessee, is not invalid merely because it was issued in the name of a deceased person. The Tribunal noted that since the appeal itself was filed under the deceased's name, the order cannot be quashed on that ground alone.
Judicial Member Laliet Kumar and Accountant Member Manoj Kumar Aggarwal observed, “since the appeal before the CIT(A) itself was instituted in the name of Sh. Lakha Singh and not in the name of his legal heir, the order passed by the Ld. CIT(A) cannot be held to be vitiated merely because it was passed in the name of the deceased. Assuming for a moment that the order of the CIT(A) were to be treated as erroneous for this reason, even in that eventuality the order of the Assessing Officer would remain undisturbed and would continue to operate against the assessee”,
The case pertained to one Lakha Singh, whose reassessment under Section 144 read with Section 147 of the Income Tax Act for Assessment Year 2012–13 resulted in additions of ₹60 lakh for alleged unexplained investment in land and ₹39.4 lakh for cash deposits in bank. The reassessment was completed on December 9, 2019, and Singh unfortunately passed away on January 17, 2020. The appeal before the CIT(A) was filed thereafter by his legal heir, Hira Singh.
The legal heir argued that the CIT(A)'s order was void since it was passed posthumously in the deceased's name. He also claimed that vital evidence explaining the source of funds was not accepted, despite being delayed due to the assessee's age and illness. The Revenue countered that Form 35 was signed by the legal heir and the process was followed correctly.
The ITAT dismissed the plea that the order was invalid on technical grounds. However, it agreed that the CIT(A) wrongly rejected additional evidence without seeking a remand report.
The tribunal set aside the order and remanded the case to the CIT(A) for fresh hearing.
Case Title : Late Shri Lakha Singh Through Legal Heir Hira Singh Dera v ITO, Kurukshetra
Case Number: ITA No. 1151/Chd/ 2024
Appearances:
For Appellant: Advocate Sudhir Sehgal
For Revenue: Vivek Vardhan, Addl. CIT
Click here to read/download order