The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) held that the revision order under section 263 of the Income Tax Act,1961 against a deceased person was invalid.
Hiraben Babubhai Patel Legal Heir of Babubhai Shankarbhai Patel, the appellant assessee appealed against the revision order passed by the Commissioner of Income Tax (Appeals) for directing the assessing officer to pass fresh assessment order.
Tushar Hemani and Parimalsinh B. Parmar, the counsels for the assessee contended that the order passed by the Commissioner of Income Tax (Appeals) under section 263 of the Income Tax Act was void ab initio since the same had been passed on a deceased person.
It was further submitted that the assessee had requested to drop the revision proceedings since the proceedings had been initiated in the name of Shri Babu Bhai Patel (the assessee), who had passed away on the date of initiation of the proceedings, and accordingly, proceedings under section 263 of the Income Tax Act are liable to be dropped.
Sudhendu Das, the counsel for the revenue contended that the long-term capital loss shown by the assessee amounting to had been wrongly claimed, since the assessee’s share in property transferred was only 50%, whereas loss had been claimed by the assessee as 100%.
The bench observed that a notice issued /order passed in the name of a dead person was not a valid notice/order.
The two-member bench comprising Annapurna Gupta (Accountant) and Siddhartha Nautiyal (Judicial) quashed the revision order passed by the Commissioner under section 263 of the Income Tax Act while allowing the appeal filed by the assessee.
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