SMT. HANSABEN VINODBHAI PARMAR LEGAL HEIR OF LATE SHRI VINODBHAI MOTIBHAI PARMAR,GANDHINAGAR V. THE ACIT/DCIT CIRCLE, GANDHINAGAR

MA 149/AHD/2024

AI Insights

The case involves a Miscellaneous Application by Smt. Hansaben Vinodbhai Parmar, the legal heir of the late Shri Vinodbhai Motibhai Parmar, against an order of the ITAT which had previously upheld an assessment made in the name of a deceased person. The assessee contended that the ITAT erred in law by not recognizing that an assessment order cannot be passed in the name of a deceased person, thus rendering it null and void. The ITAT dismissed the application, stating that it was seeking a review rather than rectification, which is not permissible under Section 254 of the Income Tax Act. The ITAT also clarified that at the time the assessment proceedings were initiated, the assessee was alive, and it was only during the proceedings that the assessee passed away, a fact not communicated to the Assessing Officer by the legal heirs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312598 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Section 254 of the Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: SULABH PADSHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER M.A. No.149/Ahd/2024 in I.T.A. No.58/Ahd/2024 (Assessment Year: 2017-18) Smt. Hansaben Vinodbhai Parmar (L/h. of Late Shri Vinodbhai Motibhai Parmar), (Prop. of Nidhi Petroleum), 11, Shivdarshan Bungalow, B/h. Swagat City, Kudasan, Dist. Gandhingar Vs. ACIT/DCIT, Circle, Gandhinagar (Present Jurisdiction ACIT/DCIT Circle, Gandhinagar) [PAN No.AREPP0168K/ABSPP1104B] (Appellant) .. (Respondent) Appellant by : Shri Sulabh Padshah, A.R. Respondent by: Shri B.P. Srivastava, Sr. D.R. Date of Hearing 31.01.2025 Date of Pronouncement 29.04.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: The present Miscellaneous Application is against the order passed by ITAT dated 12.06.2024. In the present Miscellaneous Application, the assessee has contended that the ITAT erred in law in not taking into cognizance of the well-established legal principle that an assessment order cannot be passed in the name of a deceased person, thereby making the assessment order as null and void in the eyes of law. Before us, the Counsel for the assessee relied on various arguments and judicial M.A No.149/Ahd/2024 (in ITA No. 58/Ahd/2024) Smt Hansaben Vinodbhai Parmar (L/h. of Late Shri Vinodbhai Motibhai Parmar) vs. ACIT/DCIT Asst. Year –2017-18 - 2– precedents which were taken during the course of proceedings before the Tribunal in the original round of proceedings as well. 2. On going through the Miscellaneous Application filed by the assessee and the arguments taken before us, we are of the considered view that the present Miscellaneous Application is liable to be dismissed firstly, for the reason that vide the present Miscellaneous Application, the assessee is seeking review of order of ITAT, which is clearly outside the purview of rectification jurisdiction under Section 254 of the Act. It is a well settled law that in Miscellaneous Application proceedings only apparent mistakes in the order can be corrected / rectified and recourse cannot be taken to Miscellaneous Application proceedings with a view to seek review of the order passed by the ITAT, which is outside the scope of rectification proceedings. Secondly, we observe that the ITAT is aware that it is a well settled law that an assessment cannot be passed in the name of a deceased assessee, but in the instant facts, after a detailed review of facts, the ITAT was of the considered view that judicial precedents on the subject cited by the assessee were not applicable to assessee’s set of facts, since at the time the assessment proceedings were initiated, the assessee was alive and it was only during the course of assessment proceedings, that there was unfortunate demise of the assessee. However, the assessee’s legal heirs did not intimate this fact to the concerned Assessing Officer and it was in light of these facts that the matter was restored to the file of Assessing Officer with a direction to continue the proceedings against the legal heirs, M.A No.149/Ahd/2024 (in ITA No. 58/Ahd/2024) Smt Hansaben Vinodbhai Parmar (L/h. of Late Shri Vinodbhai Motibhai Parmar) vs. ACIT/DCIT Asst. Year –2017-18 - 3– after giving due opportunity of hearing to the assesee to present it’s case on merits. 3. In view of the above observations, the Miscellaneous Application filed by the assessee is dismissed. This Order pronounced in Open Court on 29/04/2025 Sd/- Sd/- (NARENDRA P. SINHA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 29/04/2025 Tanmay, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 28.04.2025 2. Date on which the typed draft is placed before the Dictating Member 29.04.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 29.04.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement .04.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 29.04.2025 7. Date on which the file goes to the Bench Clerk 29.04.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "