Income Tax Assessment order passed in Name of Deceased person void ab-initio: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT) Hyderabad has dismissed an appeal filed by the revenue where in the department was appealing the maintainability of an assessing order on a deceased assessee.

The Assessee Late Ajith Kumar Vaddevalli was in the business of software consultancy and had filed his return of income on 30/09/2013 admitting total income of Rs. 27,09,790/-. The case was selected for scrutiny and statutory notices were issued and also a show cause notice was issued to the assessee on 11/03/2016.During the course of assessment proceedings, the assessee’s wife and legal heir submitted that the assessee had died on 22/03/2014. Assessing Officer (AO) after examining the details submitted by the assessee, assessed the income of the assessee at Rs. 6,45,76,298 by making an addition of Rs. 6,18,66,508/- towards long term capital gains and accordingly, passed the assessment order on 30/03/2016 in the name of the assessee.

Shri P. Murali Mohana Rao, representing the assessee had submitted that the legal heirs of the assessee had gone for appeal before the Commissioner of Income Tax (Appeals) and after considering the submissions of the assessee, the addition made by the AO were deleted.

Judicial Member S.S. Godara and Accountant Member L.P. Sahu dismissed the appeal by the revenue holding, “After considering the submissions of both the parties and perusing the material on record as well as going through the orders of revenue authorities, we find substance in the submissions of the ld. AR that the AO has passed the order in the name of late Ajit Kumar, non- existent person, the information of which has been intimated to AO by the wife of assessee, who is the legal heir, during assessment proceedings. A copy of death certificate of VaddevalliAjit Kumar has also been produced before us issued by the Greater Hyderabad Municipal Corporation. Dated 13/05/2014. Considering the case law submitted by the ld. AR, which are in support of assessee’s case, the assessment order passed by the AO is void and ab- initio and the same is not sustainable in the eyes of law. Against such assessment order, appeal filed by the revenue stands dismissed.”

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