The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) invalidated the Principal Commissioner of Income Tax ( PCIT )’s Section 263 revision order issued in the name of a deceased taxpayer, citing procedural lapses.
Gitesh Chandulal Patel,(Legal Heir of late Hasumatiben Chandubhai Patel) appellant-assessee,challenged the order dated 06.02.2024, issued by the PCIT. The assessee raised the following grounds of appeal: The order under Section 263 was invalid as it was issued in the name of a deceased person. The PCIT erred in setting aside the reassessment order dated 26.03.2022, as the Assessing Officer(AO)had already examined the issue of unexplained cash deposits.
The PCIT also wrongly concluded the reassessment order was erroneous and prejudicial to the revenue. Furthermore, the direction to pass a fresh assessment order was unjustified, and the conditions for invoking Section 263 were not met.
Know How to Investigate Books of Accounts and Other Documents, Click Here
The Income-tax Officer(ITO), Ward-1, Mehsana, passed the assessment order under Section 147 of the Act on 26.03.2022, determining the total income at Rs. 6,00,620, against the returned income of Rs. 3,98,620. According to Paragraph 2 of the order, a notice under Section 142(1) was issued on 12.11.2021, asking the assessee to provide details.
The assessee responded on 25.12.2021, stating that they had passed away on 30.05.2021. The case was then transferred to the JAO on 11.03.2022, and a new notice was issued on 12.03.2022 to the legal heir under Section 159 of the Act. The objections raised by the assessee were addressed, and information regarding cash deposits during the demonetization period was requested.
The PCIT passed an order on 06.02.2024 under Section 263 of the Act, setting aside the assessment order issued by the ITO, Ward-1, Mehsana. The AO had noted that the assessee passed away after the proceedings were initiated and that a death certificate confirming the date of death as 30.05.2021 was submitted. Despite this, the PCIT passed the order in the name of the deceased.
Know How to Investigate Books of Accounts and Other Documents, Click Here
The two member bench comprising Dr.BRR Kumar(Vice President) and Siddhartha Nautiyal(Judicial Member)concluded, based on the facts, that the PCIT had failed to pass a valid order under Section 263 of the Act and the tribunal, therefore, found the order to be invalid.
In short, the appeal filed by the assessee was allowed.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
