ITAT quashes Revisional Order since Income Tax Notice was issued against Dead Person [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has quashed the revisional proceedings against the legal heir for the reason that the notice issued in the name of a dead person is null and void.

The two-member bench of Amit Shukla (Judicial Member) and Pradip Kumar Kedia (Accountant Member) was considering an appeal filed by the legal heir and wife of the deceased-assessee against the revisional order of the Principal Commissioner of Income Tax (PCIT) passed under Section 263 of the Income Tax Act, 1961. The assessment order passed by the Assessing Officer under Section 143(3) read with Section 147 of the Act was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction.

The appellant contended that the initiation of revisional proceedings and consequential order under Section 263 of the Act is in the name of a deceased person is a nonest and unsustainable in the eyes of law. The assessment order under revision is neither erroneous nor prejudicial to the interest of the Revenue and thus the revisional commissioner was not competent to exercise revisional powers.

The appellant contended that after the death of the assessee the show cause was issued and addressed to the deceased-assessee instead of legal heir.

Allowing the above contentions, the bench held that the entire proceedings beginning from issue of show cause notice and culminating in revisional order under Section 263 of the Act is a nonest exercise and cannot be given effect in law regardless of the fact whether the revenue was privy to death or otherwise.

"We are constrained to observe that such a casual approach of a very senior functionary of the Department does not augur well in the eyes of public and cannot be countenanced on the touchstone of sacrosanct principle of natural justice explicit in 263 itself," the ITAT ruled.

The Tribunal, while allowing the appeal, held that in the absence of any opportunity to the assessee, for which the fault is attributable squarely to the PCIT is fatal and such defect being incurable, the revisionary order passed under Section 263 of the Income Tax Act is also required to be quashed.

To Read the full text of the Order CLICK HERE

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