Delhi bench of Income Tax Appellate Tribunal (ITAT) in its recent order proclaimed that the mistake of sending notice in the name of deceased assessee cannot be cured by invoking section 292B of the Income Tax Act 1961.
Assessee in the present case is an individual had sold an immovable property for a consideration during the financial year relevant to the assessment year. During the assessment proceedings the Assessing Officer (AO) has observed the same and issued a statutory notice against the said transaction. In response of the notice issued under section 142(1) and 143(2) of the Income Tax Act 1961 representatives of assessee attended before the AO and stated that the assessee was demised.
AO passed the assessment order under section 143 (3) of the act in the name of deceased assessee making an addition of Rs. 62,11,917 on account of long term capital gain.
The legal heirs of the assessee were on appeal before CIT (A) by challenging the validity of the assessment order passed by the AO after the death of assessee. CIT (A) observed that the order passed under section 143(3)/147 of the Act after the death of assessee by the AO is invalid.
Aggrieved by the order pronounced by the CIT (A) revenue was on appeal before the tribunal.
While perusing the submissions advanced by both the sides in light of the records the division bench consists of Judicial Member Beena.A.Pillai and President G.D.Agarwal upheld the order pronounced by the CIT (A) and has also objected the assessment order passed by the AO in the name of the demised assessee. Further the bench observed that AO was well informed regarding the demise of assessee, in such a situation of the non-existence of an assessee the AO ought to have issued the notice under the name of legal heirs and should have passed the assessment order in the name of such legal hairs and not in the name of the deceased assessee. And the bench also reminded that such mistakes cannot be cured by section 292B of the Act.
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