JASBIR KAUR LH LATE HARBHAJAN SINGHCHADHA,MORADABAD V. DCIT, CENTRAL CIRCLE-29, MORADABAD

ITA 31/DEL/2023

AI Insights

The case involves an appeal by Smt. Jasbir Kaur, the legal heir of the late Shri Harbhajan Singh Chadha, against a penalty order issued by the Deputy Commissioner of Income Tax, Central Circle-29, New Delhi. The penalty was levied under Section 271(1)(c) of the Income Tax Act for the assessment year 2015-16. The primary contention raised by the appellant was that the penalty was incorrectly issued in the name of a deceased person, which rendered it invalid. The Tribunal, upon reviewing the facts and the applicable law, agreed with the appellant's argument and quashed the penalty order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471479 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 03-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: SALIL KAPOOR; ANANYA KAPOOR
• Section: 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH- - - -C C C C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE BEFORE BEFORE BEFORE SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH SHRI MAHAVIR SINGH, , , , VICE VICE VICE VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA SHRI NAVEEN CHANDRA, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA No ITA No ITA No ITA No.31 .31 .31 .31/Del/2 /Del/2 /Del/2 /Del/20 0 0 023 23 23 23 Assessment Y Assessment Y Assessment Y Assessment Year : 20 ear : 20 ear : 20 ear : 201 1 1 15 5 5 5- - - -16 16 16 16 Smt. Jasbir Kaur, Smt. Jasbir Kaur, Smt. Jasbir Kaur, Smt. Jasbir Kaur, (Legal Heir of Lt. Shri (Legal Heir of Lt. Shri (Legal Heir of Lt. Shri (Legal Heir of Lt. Shri Harbhajan Sing Harbhajan Sing Harbhajan Sing Harbhajan Singh Chadha), h Chadha), h Chadha), h Chadha), 455, Civil Lines, 455, Civil Lines, 455, Civil Lines, 455, Civil Lines, Moradabad Moradabad Moradabad Moradabad – – – – 244 001. 244 001. 244 001. 244 001. PAN : ACKPC9645F. PAN : ACKPC9645F. PAN : ACKPC9645F. PAN : ACKPC9645F. Vs. Vs. Vs. Vs. Deputy Commissioner of Deputy Commissioner of Deputy Commissioner of Deputy Commissioner of Income Tax, Income Tax, Income Tax, Income Tax, Central Circle Central Circle Central Circle Central Circle- - - -29, 29, 29, 29, New Delhi. New Delhi. New Delhi. New Delhi. (Appellant) (Respondent) Appellant by : Shri Salil Kapoor, Ms. Ananya Kapoor and Shri Tarun Chanana, Advocates. Respondent by : Shri Dayainder Singh Sidhu, CIT-DR. Date of hearing : 25 25 25 25.1 .1 .1 .11 1 1 1.2024 .2024 .2024 .2024 Date of pronouncement : 25 25 25 25.11 .11 .11 .11. . . .2024 2024 2024 2024 ORDER ORDER ORDER ORDER Per Naveen Chandra, AM Per Naveen Chandra, AM Per Naveen Chandra, AM Per Naveen Chandra, AM : : : : This appeal by the assessee is arising out of the order of learned Commissioner of Income-tax (Appeals)-30, New Delhi dated 31st October, 2022 for the assessment year 2015-16. 2. At the outset, learned counsel for the assessee raised a preliminary issue that the penalty order is passed on a dead person. He drew our attention to the assessment order which is passed on the legal heir and referred to clause (1) and (2) of the order of the Assessing Officer mentioned at page 1, which read as under :- “1. Name of the Assessee : Smt. Jasbir Kaur (Legal heir of Lt. Sh. Harbhajan Singh Chadha) 2. Address of the Assessee : 455, Civil Lines, Moradabad Uttar Pradesh – 244001.” 3. Learned Counsel stated that this order is dated 1st March, 2021. He stated that the penalty order under Section 271(1)(c) of the Act was passed ITA No.31/Del/2023 2 by the Assessing Officer on dead person i.e., in the name of the assessee and relevant preface of page 1 reads as under :- 1. PAN ACKPC9645F 2. Name of the assessee HARBHAJAN SINGH CHADHA 3. Address of the assessee 455, Civil Lines, Pili Kothi Civil Lines, Moradabad 244001, Uttar Pradesh, India 4. Assessment year 2015-16 5. Status Individual 6. Amount of Penalty Rs.2085093 7. Date of Order 27/08/2021 8. DIN ITBA/PNL/F/271(1)(c)/2021- 22/1035155019(1) 4. Learned Counsel stated that once the penalty order is passed on a dead person, it has no locus standi and has to be declared null and void. He stated that the assessee died on 22nd December, 2020, which is much before the passing of the assessment order as well as penalty order. Hence, this penalty order will not survive and has to be quashed. 5. On query from the Bench, learned CIT-DR could not controvert the said position and did not make any argument. 6. After going through the facts of the case, we are of the view that the penalty order passed under Section 271(1)(c) of the Act by the Assessing Officer is clearly on a dead person. No order will survive if passed on a dead person without impleading legal heirs. Hence, this penalty order will not survive and accordingly, we quash the same. 7. In the result, the appeal of the assessee is allowed. Above decision was pronounced in the open Court on 25th November, 2024. Sd/- Sd/- ( ( ( (MAHAVIR SINGH MAHAVIR SINGH MAHAVIR SINGH MAHAVIR SINGH) ) ) ) (NAVEEN CHANDRA (NAVEEN CHANDRA (NAVEEN CHANDRA (NAVEEN CHANDRA) ) ) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER VK. ITA No.31/Del/2023 3 Copy forwarded to: - 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "