Income Tax Order Issued in Deceased Taxpayer's Name: ITAT Remands Matter for Fresh Adjudication [Read Order]

The Bangalore bench of Income Tax Appellate Tribunal (ITAT) remanded the case for fresh adjudication to the Commissioner of Income Tax (Appeals) [CIT(A)], due to the order issued in the name of a deceased individual was unsustainable.

Adeep Panicker Pais, (assessee), who passed away while his appeal was pending before the CIT(A). Despite his demise the commissioner of Income Tax (appeals)[CIT(A)] issued an order in his name.

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Jacinta Panicker, legal heir, has challenged the validity of this order before the tribunal, arguing that it was issued without proper legal standing.

The Counsel of the deceased assessee contended that an order passed in the name of a deceased person is void ab initio. Therefore, the counsel requested the tribunal to restore the matter to the CIT(A) for fresh adjudication in the name of the legal heir of the deceased assessee. 

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The counsel of the assessee also submitted that the sale deed was filed before the CIT(A). The counsel also highlighted that the sale deed was not considered by the CIT(A). Therefore, the counsel of the assessee requested to set aside the order of the CIT(A).

The Counsel for the revenue acknowledged the lapse and the counsel did not oppose the remand of the case for fresh consideration.

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The two-member bench comprising Shri Waseem Ahmed (Accountant Member) and Shri Prakash Chand Yadav (Judicial Member), observed that the responsibility of notifying the appellate authority about the assessee’s demise rested on the legal heir.

However, considering the circumstances, the tribunal observed that the case of the assessee must be remanded back to the CIT(A). The tribunal observed that the additional evidence was crucial for resolving the issue.

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Therefore, the tribunal remanded matters back to the CIT(A) for fresh adjudication considering the interest of justice and fairness. The tribunal additionally admitted the sale deed as additional evidence under Rule 29 of the Income Tax Appellate Rules.

The tribunal also directed the CIT(A) to consider the additional evidence in the fresh adjudication. The appeal of the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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