LATE PARAMJEET SINGH CHAWALA (GURNEET CHAWLA LEGAL HEIR),NEW DELHI V. DCIT, FARIDABAD

ITA 2093/DEL/2019

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The case involves an appeal by Mrs. Gurneet Chawla, the legal heir of the late Mr. Paramjeet Singh Chawla, against a penalty order under section 271AAA of the Income Tax Act, 1961. The penalty was initially levied by the Assessing Officer despite being informed of the assessee's death prior to the order's issuance. The primary legal contention was that the penalty order, being issued in the name of a deceased individual, was a nullity in the eyes of the law. The Commissioner of Income Tax (Appeals) upheld the penalty without addressing the legal ground concerning the issuance in the name of a deceased person. The Tribunal, upon review, found the penalty order to be without jurisdiction and thus set it aside.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298829 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: S SOMIL AGARWAL; DEEPESH GARG; ADVOCATES
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एफ”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी एम बालागणेश, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M BALAGANESH, ACCOUNTANT MEMBER आअसं.2093/िदʟी/2019(िन.व. 2012-13) ITA No.2093/DEL/2019(A.Y.2012-13) Mrs. Gurneet Chawla, (Legal Heir of late Mr. Paramjeet Singh Chawla) C/o R.C. Rai & Associates, 203, 2nd Floor, Akashdeep, 26A, Barakhamba Road, New Delhi 110001 PAN:ACWPC-3161-C ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, Central Circle-II, Faridabad, Haryana ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : S/Shri Somil Agarwal & Deepesh Garg, Advocates ŮितवादीȪारा/Respondent by : Ms. Harpreet Kaur Hansra, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 19/02/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 21/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-3, Gurgaon (hereinafter referred to as 'the CIT(A)') dated 29.12.2018, for assessment year 2012-13, confirming levy of penalty u/s. 271AAA of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). 2. Shri Somil Agarwal, appearing on behalf of the assessee submitted that the order of levying penalty dated 19.02.2018 has been passed in the name of a dead person. Narrating facts of the case, he submitted that Paramjeet Singh Chawla, 2 ITA NO.2093/DEL/2019 (A.Y.2012-13) the assessee died on 19.08.2017. The fact of death of Paramjeet Singh Chawla was informed to the Assessing Officer (AO) on 13.02.2018 by his legal heirs along with death certificate. A copy of said communication is at page no. 2 to 10 of the paper book. The fact that the assessee had furnished reply to show cause notice u/s. 271AAA of the Act is acknowledged by the Assessing officer in para 4 of the penalty order dated 19.02.2018. Despite, the fact that the AO was aware of death of Paramjeet Singh Chawla, he still passed the penalty order u/s. 271AAA of the Act in the name of deceased. The assessee carried the issue in appeal before the CIT(A). The ld. Counsel pointed that in grounds of appeal filed before the CIT(A), the first ground was that the penalty order was passed on ‘dead person’, therefore, the said order is nullity in the eye of law. The CIT(A) while passing impugned order did not even refer to the legal ground, raised by the assessee and decided the appeal only on merits. 3. Per contra, Ms. Harpreet Kaur Hansra representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. 4. Both sides heard, orders of the authorities below examined. The short issue in appeal for adjudication before us is, Whether the penalty order u/s.271AAA of the Act passed in the name of ‘dead person’ is legally sustainable? 5. The assessee Paramjeet Singh Chawla died on 19.08.2017, the fact regarding death of the assessee was communicated to the Assessing Officer by legal heirs purportedly on 13.02.2018. The AO in para 4 of the penalty order has recorded the fact that a reply to the show cause notice was filed on 13.02.2018. The assessee has placed on record copy of said reply at page no. 2 to 10 of the 3 ITA NO.2093/DEL/2019 (A.Y.2012-13) paper book. A perusal of the reply shows that in the opening paragraph, it is mentioned that the assessee has expired on 19.08.2017. The assessee has also placed on record copy of death certificate of Paramjeet Singh Chawla at page no. 10 of the paper book. It is no more res integra that the assessment order cannot be passed in the name of non existing entity be, it a juristic person like company or natural person. Likewise, penalty order in the name of a ‘dead person’ or a non existing entity is unsustainable. If, any penalty order is passed in the name of a dead person the same is null and void. Considering facts of the case, we held that penalty order dated 19.02.2018 passed in the name of dead person is without jurisdiction, hence, unsustainable. 6. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Friday the 21st day of February, 2025. Sd/- Sd/- (M BALAGANESH) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 21/02/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध.,िदʟी/DR, ITAT,Delhi 5. गाडᭅ फाइल/Guard file. 4 ITA NO.2093/DEL/2019 (A.Y.2012-13) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Delhi "