LATE SITTHAGOUNDER RASU, REPL BY LEGAL HEIR R. KUMARESAN,BHAVANI V. ITO, WARD-1(4), ERODE

ITA 2311/CHNY/2025

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The case involves an appeal by the legal heir of the late Sitthagounder Rasu against the assessment order for the year 2017-18, which was erroneously passed on the deceased. The legal heir provided the death certificate and a no-objection certificate from other heirs, informing the Assessing Officer about the death. Despite these notifications, the assessment proceeded in the name of the deceased. The Tribunal, referencing decisions from the Supreme Court, found that the assessment against a deceased person was not sustainable and should have been conducted in the name of the legal representative.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785378 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 21-08-2025
• Other Referred Cases: CIT v. Amarchand N. Shroff [1963] 48 ITR 59, CIT v. Shantilal C. Mehta [1978] 113 ITR 79 (Cal)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C.P. SOLOMON
• Assessee Lawyers: LAKSHMI VENKATARAMAN; F
• Section: 143(3); 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘‘सी’’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी ऐम. बालगनेश, लेखा सद˟ एवं ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ Before Shri M. Balaganesh, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.2311/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Late Sitthagounder Rasu by L/R. R. Kumaresan, 693, Kuthiraikalmedu, Kadappanallur Post, Bhavani, Tamil Nadu 638 311. [PAN:BDRPS0224H] Vs. The Income Tax Officer, Ward 1(4), Erode. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Lakshmi Venkataraman, F.C.A. (Virtual) ŮȑथŎ की ओर से/Respondent by : Shri C.P. Solomon, JCIT सुनवाई की तारीख/ Date of hearing : 23.10.2025 घोषणा की तारीख /Date of Pronouncement : 28.10.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 30.07.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18. 2. In the grounds of appeal, besides challenging the assessment made on a deceased person is bad in law and not legally sustainable on Printed from counselvise.com I.T.A. No.2311/Chny/25 2 merits, the assessee also challenged confirmation of addition made under section 69A of the Income Tax Act, 1961 [“Act” in short]. 3. At the outset, the ld. AR Shri T.S. Lakshmi Venkataraman, FCA submits that the assessment was completed under section 143(3) of the Act dated 10.12.2019 on a deceased person. He drew our attention to first para of the assessment order and submits that the legal heir of the assessee informed the Assessing Officer vide letter dated 24.06.2019 that his father (assessee) expired on 21.12.2018 and filed death certificate of the deceased assessee besides filing NOC from other legal heirs by letter dated 13.09.2019. He vehemently argued that having possession of the above documents, the Assessing Officer should have brought the legal heirs on record and should have dropped the proceedings initiated against the deceased assessee in as much as the proceedings cannot be continued on a deceased person. By relying on the decisions of the Hon’ble Supreme Court in the case of CIT v. Amarchand N. Shroff [1963] 48 ITR 59 as well as the decision in the case of CIT v. Shantilal C. Mehta [1978] 113 ITR 79 (Cal), the ld. AR argued on the death of an assessee, his estate remains liable for payment of taxes accruing both before and after his death and moreover, after the death of Printed from counselvise.com I.T.A. No.2311/Chny/25 3 the assessee, the assessment proceedings can only continue in the name of his legal representative and prayed to quash the assessment. 4. The ld. DR Shri C.P. Solomon, JCIT submits that the legal heir of the deceased assessee appeared in the assessment proceedings and therefore, the arguments of the ld. AR cannot be entertained. 5. We have heard both the parties and perused the material available on record. The assessee is an individual and filed his return of income on 19.12.2017 admitting an income of ₹.8,15,150/-. The case was selected for scrutiny under CASS to verify the cash deposited during the year. We note that the notice under section 143(2) of the Act was issued on 15.08.2018 and served on the assessee. Notice under section 142(1) of the Act was also issued on the assessee calling for details. It is an admitted fact that the assessee expired on 21.12.2018 and along with death certificate, the assessee’s legal heir informed the same to the Assessing Officer vide his letter 24.06.2019, which is placed at enclosure- 1 of the written submissions besides filing NOC from other legal heirs by letter dated 13.09.2019. However, on perusal of the assessment order, we note that having possession of the above documents, the Assessing Officer failed to bring the legal heirs on record and should have dropped the proceedings initiated against the deceased assessee, in as much as, Printed from counselvise.com I.T.A. No.2311/Chny/25 4 the proceedings should have continued in the name of assessee’s legal representative. Under the above facts and circumstances as well as in view of the case law relied on by the ld. AR, we are of the opinion that the assessment order passed by the Assessing Officer under section 143(3) of the Act dated 10.12.2019 is bad in law and not legally valid. Accordingly, the assessment order is quashed. Since we have quashed the assessment order and allowed ground No. 2 raised in the grounds of appeal, ground Nos. 3 to 8 raised on merits with regard to the addition made under section 69A of the Act become academic. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced on 28th October, 2025 at Chennai. Sd/- Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 28.10.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "