BHARAT RANCHOD L/H OF GOVAN MORAB RANCHOD,NAVSARI V. INCOME TAX OFFICER (INTERNATIONAL TAXATION), SURAT

ITA 1301/SRT/2024

AI Insights

The case involves Bharat Ranchod, the legal heir of Govan Morab Ranchod, appealing against an assessment order passed by the Income Tax Officer (ITO) under sections 144 and 147 of the Income-tax Act, 1961, for the assessment year 2011-12. The primary contention was that the assessment was incorrectly made in the name of Govan Morab Ranchod, who had passed away before the issuance of the notice under section 148 of the Act. The tribunal referenced a similar case, Chandravadan Shah L/h Chhottalal Tarachand Shah, where it was held that an order passed in the name of a deceased person is a nullity and void ab initio, supported by the Supreme Court's decision in CIT vs. Amarchand N. Shroff.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473310 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Other Referred Cases: CIT vs. Amarchand N. Shroff, 48 ITR 59 (SC), Chandravadan Shah L/h Chhottalal Tarachand Shah in ITA No.745/SRT/2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: RASESH SHAH
• Keywords: Validity of assessment
• Section: 147; 148; 144; 250; 48

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1301/SRT/2024 Assessment Year: (2011-12) (Physical court hearing) Bharat Ranchod L/h. Govan Morab Ranchod 404, Priyanka, b/h Parsi Hospital, Luncikui, Navsari-396 445 बनाम/ Vs. Income Tax Officer, (International Taxation) Room No. 107, Income Tax Office, Anavil Business Centre, Adajan- Hazira Road, Adajan, Surat-395 009 èथायीलेखासं./जीआइआरसं./PAN/GIR No: AMKPR 4787 M (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Appellant by Shri Rasesh Shah, CA राजˢ की ओर से /Respondent by Shri Mukesh Jain, Sr-DR सुनवाई की तारीख/Date of Hearing 12/03/2025 उद ्घोषणा की तारीख/Date of Pronouncement 24/03/2025 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 14.11.2024 by the Commissioner of Income-tax(Appeals)-4, Ahmedabad [in short ‘the CIT(A)’] for the assessment year (AY) 2011-12, which in turn arises out of assessment order passed by Assessing Officer (in short ‘AO’) u/s 144 r.w.s. 147 of the Act dated 28.12.2018. Grounds of appeal raised by the assessee are as under: “1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in not adjudicating the ground of assessee on validity of assessment that the learned Assessing Officer has wrongly re- 2 ITA No.1301/SRT/2024/AY.11-12 Bharat Ranchod l/h Govan M Ranchod opened the assessment u/s 147 by issuing notice u/s 148 of the Act in the name of deceased person and therefore, the initiation of reassessment proceeding and consequential order passed u/s 147 r.w.s.144 are bad in law and void ab initio. 2. It is therefore prayed that the assessment framed u/s 147 r.w.s. 144 may kindly be quashed and/or the addition made by Assessing Officer may please be deleted. 3. The appellant craves leave to add, amend, alter, delete or modify all or any of the grounds before or during the course of final hearing of appeal.” 2. At the outset, the Ld. Authorized Representative (Ld.AR) of the assessee submitted that the impugned assessment order u/s 144 r.w.s. 147 of the Act dated 28.12.2018 was passed in the name of a dead person, Shri Govan Morab Ranchod, who expired on 01.02.2015. The Ld. AR has filed a paper book enclosing therein the Certificate of Death issued on 18.02.2015. The Ld. AR has also enclosed copy of the letter addressed to the ITO, Ward-2, Navsari informing him about the death of Govan Morab Ranchod (assessee). Copy of the said letter is at page 2 and 3 of the paper book. The assessee again informed the AO about the death of assessee vide letter dated 01.12.2017, which is at page 4 and 5 of the paper book. Despite having the above information, the AO has passed order in the name of dead person which is a nullity in the eyes of law. The Ld. AR relied on various decisions including decision of the co-ordinate Bench of this Tribunal in the case of Chandravadan Shah L/h Chhottalal Tarachand Shah in ITA No.745/SRT/2024 dated 06.11.2024 where appeal of assessee was allowed by holding that the order passed in the 3 ITA No.1301/SRT/2024/AY.11-12 Bharat Ranchod l/h Govan M Ranchod name of death person is a nullity and void ab initio. The relevant part of the order is as under: “6. … …. There is no dispute that both AO and CIT(A) have passed orders on a dead person, which is nullity and void ab initio. The Hon’ble Supreme Court in the case of CIT vs. Amarchand N. Shroff, 48 ITR 59 (SC) has held that the individual must be a living person and no assessment can be made on a dead person. Various appellate fora have also held that no order of assessment or reassessment could be made on a dead or non-existing person. Hence, the order passed b t he Ld.CIT(A) is a nullity in the eyes of law. Hence, the same is quashed and appeal of the assessee is allowed.” 2.1 In view of the facts discussed above and following the decision cited supra, appeal of assessee is allowed. 3. In the result, appeal of the assessee is allowed. Order pronounced under proviso to Rule 34 of ITAT, Rules, 1963 on 24/03/2025 in the open court. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) Æयाियक सदÖय/JUDICIAL MEMBER लेखा सदÖय/ ACCOUNTANT MEMBER सूरत /Surat Ǒदनांक/ Date: 24/03/2025 Dkp Outsourcing Sr.P.S* आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ (अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडª फाईल/ Guard File // True Copy // By order/आदेश से, सहायक पंजीकार आयकर अपीलȣय अͬधकरण, सूरत "