Anil Kumar (L/H) of Azad Singh, Sonepat V. Pr. CIT , Rohtak

ITA 3102/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1997 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 10-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOEL
• Assessee Lawyers: S KRISHNAN
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 3102/DEL/2019 : ASSTT. YEAR : 2014-15 ANIL KUMAR L/H OF AZAD SINGH H.NO. 166, VILLAGE-BADHMALIK, P.O.-RAI, DIST. SONEPAT HARYANA-131029 VS PR. CIT, ROHTAK, HARYANA (APPELLANT) (RESPONDENT) PAN NO. CVVPS1209P ASSESSEE BY : SH. S. KRISHNAN, ADV. REVENUE BY : SH. SANJAY GOEL, CIT DR DATE OF HEARING: 18.02.2020 DATE OF PRONOUNCEMENT: 05.05.2020 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. PR. CIT, ROHTAK DATED 21.02.20 19. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE ORDER PASSED BY THE PR.CIT U/S 263 OF THE INCOME TAX ACT, 1961 (THE ACT) IN THE SUBJECT CASE BEING ON A DEAD PERSON IS AB INITIO ILLEGAL AND MUST BE QUASHED. 2. THAT WITHOUT PREJUDICE TO THE FOREGOING THERE BE ING NEITHER ANY ERROR NOR ANY PREJUDICE BORNE OUT OF TH E ORDER PASSED BY THE INCOME TAX OFFICER, WARD-1, SONEPAT, THE IMPUGNED ORDER PASSED BY THE LD. PR. CIT U/S 263 OF THE ACT IS ARBITRARY, ERRONEOUS, UNF AIR AND UNJUST AND MUST BE QUASHED. ITA NO. 3102/DEL/2019 ANIL KUMAR L/H AZAD SINGH 2 3. THE ASSESSEE FILED PAPER BOOK CONSISTING OF 273 PAGES. THE LD. DR RELIED ON THE ORDER OF THE LD. PCIT. THE REL EVANT FACTS CULLED FROM THE RECORDS ARE AS UNDER: 20.12.2016 COMPLETION OF ASSESSMENT U/S 143(3) 15.09.2017 DEATH OF THE ASSESSEE 11.01.2019 NOTICE ISSUED U/S 263 12.02.2019 REPLY FILED BY THE ASSESSEE 21.01.2019 DATE OF ORDER U/S 263 BY PCIT 4. IT IS AN UNCONTROVERTED FACT THAT IT HAS BEEN IN FORMED TO THE LD. PCIT VIDE LETTER DATED 12.02.2019 THAT THE ASSESSEE HAS EXPIRED ON 15.09.2017 AND A COPY OF THE DEATH CERTI FICATE HAS BEEN ENCLOSED AS PER ANNEXURE-A (PAGE NO. 1 OF THE PB). THIS CLEARLY PROVES THAT THE REVENUE AUTHORITIES WERE MA DE AWARE OF THE DEATH OF THE ASSESSEE. THEN, THE NATURAL RECOUR SE TO THE REVENUE AS PER LAW IS TO ISSUE NOTICE ON THE LEGAL HEIR WHICH THE REVENUE FAIL TO DO AND WENT AHEAD WITH PASSING OF THE ORDER U/S 263 ON A DECEASED PERSON. HENCE, WE CAN CONCLUD E THAT SINCE THE ASSESSEE STANDS DECEASED AT THE TIME OF T HE PASSING OF THE ORDER OR EVEN ON THE DATE OF ISSUE OF NOTICE , THE ORDER OF THE LD. PCIT IS INVALID IN THE EYES OF LAW. ANY NOT ICE ISSUED ON A DECEASED PERSON CANNOT BE HELD TO BE LEGALLY VALID. THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF CIT-8 VS M. HEM ANATHAN IN APPEAL NO. 199/2006 ORDER DATED23.03.2016, WENT STE P FURTHER AND HELD THAT EVEN WHEN THE NOTICE IS ISSUED IN THE NAME OF THE DECEASED WHICH WAS SERVED UPON THE LEGAL HEIR AND T HE SAID LEGAL HEIR PARTICIPATE IN PROCEEDING THEN SUCH PROC EEDING WOULD BE A NULLITY BEING INITIATED AGAINST THE DEAD PERSO N. SIMILARLY, THE HONBLE HIGH COURT OF DELHI IN THE CASE OF PCIT , CENTRAL-1 VS KAIZEN PRODUCTS PVT. LTD. IN ITA NO. 466/2017 VIDE ORDER DATED ITA NO. 3102/DEL/2019 ANIL KUMAR L/H AZAD SINGH 3 25.07.2017 HELD THAT NOTICE ISSUED TO A NON-EXISTIN G ASSESSEE OR WORK CLEARLY VOID AB INITO. THE HONBLE SUPREME COURT IN THE CASE OF PR. COMMISSIONER OF INCOME TAX VS MARUTI SU ZUKI INDIA LIMITED VIDE ORDER DATED 25.07.2019 HELD THAT ISSUI NG OF THE LEGAL NOTICE ON A NON-EXISTING ENTITY VITIATE THE E NTIRE PROCEEDINGS. 5. HENCE, KEEPING IN VIEW THE JUDICIAL PRONOUNCEMEN TS REFERRED ABOVE AND FACTS OF THE INSTANT CASE WHEREI N THE NOTICE AS WELL AS THE ORDER HAS BEEN ISSUED ON A DECEASED PERSON, WE HEREBY HOLD THAT THE ORDER PASSED U/S 263 BY THE LD . PCIT IS VOID AB INITO. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/05/2020. SD/- SD/- (AMIT SHUKLA) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACCOUNT ANT MEMBER DATED: 05/05/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR