ITO, W-7(3), Ludhiana V. Smt. Surinderjit Kaur Chahal, Chandigarh

ITA 894/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0680 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH DHANESHTHA
• Assessee Lawyers: RAJIV SHARMA
• Keywords: Earning of tax free income
• Section: 148; 54; 144; 2; 143(2)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 894/CHD/2019 / ASSESSMENT YEAR : 2016-17 THE ITO, WARD-7(3), LUDHIANA SMT. SURINDERJIT KAUR CHAHAL, H.N. 150, GROUND FLOOR, SECTOR 11-A, CHANDIGARH ./PAN NO: ABFPC2085F / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI RAJIV SHARMA, ADVOCATE ' ! / REVENUE BY : SHRI RAJESH DHANESHTHA, ADDL.CI T # $ % /DATE OF HEARING : 04.03.2020 &'() % / DATE OF PRONOUNCEMENT : 11.06. 2020 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 18.03.2019 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-3, LUDHIANA [HEREINAFTER REFERRED TO AS CIT (A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-3 JUSTIFIED IN DELETING THE ADDITION ON THE GROUND THAT ASSESSEE HAD PASSED AWAY BEFORE ISSUE OF ITA NO. 894-CHD-2019 SMT.SURINDERJIT KAUR CHAHAL, CHANDIGARH 2 NOTICE U/S 143(2) BY IGNORING THE FACTS THAT THE REPRESENTATIVE OF THE ASSESSEE DID NOT PRODUCE BEFORE THE ASSESSING OFFICER THE REQUIRED INFORMATION/ DOCUMENTS INTENTIONALLY I.E. DEATH CERTIFICATE & DETAILS OF EXEMPT INCOME U/S 54 OF THE INCOME-TAX ACT, 1961 CLAIMED IN THE RETURN OF INCOME? II) THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE IT IS FINALLY DISPOSED OFF. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE NOTICE U/S 143(2) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') IN THIS CASE WAS ISSUED IN THE NAME OF THE DEAD PERSON I.E. ASSESSEE SMT. SURINDERJIT KAUR CHAHAL, WHO HAD ALREADY PASSED AWA Y ON 13.2.2017. CONSEQUENTLY, THE ASSESSMENT WAS ALSO FRAMED IN THE NAME OF DECEASED. THE LD. CIT(A) QUASHED THE ASSESSMENT HOLDING THE S AME AS VOID AB INITIO BY PLACING RELIANCE ON THE VARIOUS CASE LAWS . THE RELEVANT PART OF THE ORDER OF THE LD. CIT(A) IS REPRODUCED AS UNDER: - 4.6. RELIANCE IS PLACED UPON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. AMARCHAND N. S HROFF [REPORTED IN AIR 1963 SC 1448], WHEREIN IT IS STATE D THAT NO INCOME TAX ASSESSMENT CAN BE MADE IN THE NAME OF A DEAD PERSON AND THAT THE OBSERVATIONS MADE BY THE HON'BL E SUPREME COURT WILL EQUALLY APPLY TO THE NOTICES ISS UED UNDER SECTION 148 OF THE ACT. FURTHER RELIANCE IS ALSO PL ACED UPON THE DECISION OF THE HIGH COURT OF MADHYA PRADESH IN THE CASE OF SHAIKH ABDUL KADAR ITO [REPORTED IN AIR 1959 M.P . 101]. RELIANCE IS ALSO PLACED UPON THE DECISION IN THE CA SE OF MRS. KESAR DEVI VS. CIT [2010 (321) ITR 341(RAJ.)], WHER EIN IT IS HELD THAT THE NOTICE ISSUED UNDER SECTION 148 OF TH E ACT TO A DEAD PERSON IS ILLEGAL. THE DECISION OF THE HIGH CO URT OF DELHI ITA NO. 894-CHD-2019 SMT.SURINDERJIT KAUR CHAHAL, CHANDIGARH 3 IN THE CASE OF VIPIN WALIA ITO [REPORTED IN (2016) 382 ITR 19], WHICH WAS FOLLOWED BY THE HIGH COURT OF GUJARA T AT AHMEDABAD IN THE CASE OF RASID LALA VS. ITO [SPECIA L LEAVE APPLICATION NO.18987 OF 2016 DATED 29.11.2016] AS A LSO RELIED UPON. IN A RECENT DECISION HONABLE AHMEDABAD ITAT HAS DEALT THIS ISSUES IN DETAIL, IN FAVOUR OF APPEL LANT IN THE CASE OF SHRI ISHWARBHAI MAGANBHAI VS THE INCOME TAX OFFI CER, WARD-3, 23/04/2018. . 4.7 IN VIEW OF ABOVE FACTS THE PROCEEDING INITIAT ED UNDER SECTION 144 BY ISSUANCE OF NOTICE UNDER SECTION143( 2) , UPON THE APPELLANT LATE SMT SURINDERJIT KAUR CHAHAL WHO HAD ALREADY PASSED AWAY ON 13.02.2017, BECOMES NULL AND VOID AS THE NOTICE UPON A DECEASED PERSON IS VOID AND UNEFO RACABLE IN LAW, AS IT HAS BEEN ISSUED TO A DEAD PERSON. ACCORD INGLY THE ASSESSMENT BECOMES AUTOMATICALLY INVALID AB-INITIO. ACCORDINGLY SINCE THE PROCEEDINGS U/S 144 SUFFERS F ROM LEGAL LACUNA, THE APPEAL OF THE APPELLANT IS ALLOWED. T HIS GROUND OF APPEAL IS ACCORDINGLY STANDS ALLOWED. 4. ADMITTEDLY, THE NOTICE U/S 143(2) WAS ISSUED IN THE NAME OF THE DEAD PERSON I.E. THE DECEASED ASSESSEE. THE ISSUE I S NOW WELL SETTLED BY THE DECISIONS OF THE VARIOUS HIGHER COURTS WHO HAVE BEEN UNANIMOUS IN HOLDING THAT THE NOTICE ISSUED U/S 143(2) OF THE AC T, WHICH GIVES THE JURISDICTION TO THE ASSESSING OFFICER TO COMPLETE T HE ASSESSMENT, IF HAS BEEN ISSUED IN THE NAME OF THE DEAD PERSON IS NON E ST IN LAW AND IS NOT SAVED EVEN BY SECTION 292B OF THE INCOME TAX ACT. T HE RELIANCE IN THIS RESPECT CAN ALSO BE PLACED ON THE RECENT DECISION O F THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF SUMITI BALAKRISHA GUPTA V ACIT (2019) 112 TAXMANN.COM 93. THE LD. CIT(A), THEREFORE, RELYING UPON THE VARIOUS ITA NO. 894-CHD-2019 SMT.SURINDERJIT KAUR CHAHAL, CHANDIGARH 4 CASE LAWS HAS RIGHTLY QUASHED THE ASSESSMENT BEING VOID AB INITIO. THERE IS NO MERIT IN THE APPEAL OF THE REVENUE AND THE SA ME IS ACCORDINGLY DISMISSED. ORDER COULD NOT BE PRONOUNCED EARLIER DUE TO NON-FU NCTIONING OF THE BENCH ON ACCOUNT OF CURFEW / LOCKDOWN IN THE WA KE OF COVID-19 PANDEMIC. ORDER PRONOUNCED ON 11.06.2020. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 11.6.2020 .. '+ ,-.- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , %2 , 34516 / DR, ITAT, CHANDIGARH 6. 157$ / GUARD FILE