Legal Heir Successfully Challenges Invalid Assessment: Court Quashes Notice and Order Against Deceased Assessee.

• The recent appeal filed by the Legal Heir of the assessee has brought to light a significant issue concerning the legality of an assessment made against a deceased individual. The appeal contested the order passed by the Ld.CIT(A), National Faceless Appeal Centre (“NFAC”) dated 29.06.2023 for the assessment year 2010-11, raising crucial revised grounds.

Grounds of Appeal:

• The primary contention revolved around the assessment order made by the Assessing Officer (AO) in the name of the deceased assessee subsequent to the notice issued u/s 148, which was also directed to the deceased. The grounds highlighted the unlawfulness of this assessment, citing it as a basis for its quashing. The appeal further argued that both the assessment and the subsequent order were contrary to the applicable law.

Legal Argument:

• The crux of the appeal centered on the fact that the original assessee, Smt. Kushal Kachwaha, had passed away before the issuance of the notice u/s 148. The Legal Heir maintained that the Revenue Authority had been duly informed of the demise prior to the notice being issued.

Judicial Review and Decision:

• Upon careful consideration of arguments presented by both the Legal Heir and the Senior DR, it was evident from the available records that the notice for reassessment had indeed been addressed to a deceased individual. Furthermore, an earlier appellate order confirmed the demise of Smt. Kushal Kachwaha and highlighted the non-receipt of the AO's notice by the Legal Heir.
• The pivotal precedent in this case was the judgment delivered by the Hon’ble Delhi High Court in the matter of Davinder Singh Thapar vs [2022] 141 taxmann.com 4 (Delhi). Drawing from this judgment, it was established that the notice issued u/s 148 and the subsequent assessment order against a deceased person were legally untenable. Consequently, these were deemed unlawful and were thus quashed.

Conclusion:

• In adherence to the principles set forth in the cited judicial precedent and considering the irrefutable fact of the deceased status of Smt. Kushal Kachwaha at the time of assessment and notice issuance, the appeal of the Legal Heir was upheld. The order for the assessment year 2010-11, dated 30.11.2017, along with the notice u/s 148 dated 27.03.2017, were deemed invalid and quashed.
• This decision underscores the crucial importance of legal compliance in taxation matters, particularly regarding the accurate identification of the assessed party. The case sets a significant precedent ensuring that assessments against deceased individuals without due acknowledgment of their demise are legally unsustainable.

Topic-Sumeet Kachwaha Versus Income Tax Officer

Court-ITAT-Delhi

Date-12/12/2023

Team Taxonation