ITAT Order Nullified for Not Substituting Deceased Respondent's Representatives; Case Remanded for Fresh Order.

The Rajasthan HC set aside the ITAT order dated 19.3.18, as it was passed without substituting the legal representatives of the deceased respondent, rendering it a nullity. The Court remanded the matter back to the ITAT for issuing a fresh order after ensuring the legal representatives are properly substituted. Both the appeal and the application to bring legal representatives on record were disposed of, with instructions for further proceedings to be conducted in compliance with the law.

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Issues:
1. Appeal against ITAT order dated 19.3.18 dismissed by Commissioner of Income Tax (Appeals)-2, Jodhpur.
2. Application to bring legal representatives of deceased respondent on record.
3. Validity of ITAT order passed without substitution of legal representatives.
4. Right of legal representatives to contest substitution application.
5. Order passed in favor of or against a deceased person is nullity.
6. Setting aside the order under appeal and remanding the matter to ITAT.
7. Remanding the matter to ITAT for passing a fresh order after substitution of legal representatives.
8. Disposal of the appeal and application (No. 2/19).

Analysis:
1. The appeal before the Rajasthan High Court was directed against the order passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, Jodhpur on 19.3.18, wherein the appeal by the Revenue against the order dated 30.8.16 by the Commissioner of Income Tax (Appeals)-2, Jodhpur was dismissed.

2. An application was filed to bring the legal representatives of the deceased respondent on record, as the respondent had passed away on 7.10.17, and this information was not recorded earlier. The appellant sought to have the legal representatives of the deceased respondent included in the present appeal.

3. The counsel for the proposed legal representatives argued that the ITAT's order, passed without substituting the legal representatives of the deceased respondent, is legally invalid. The counsel contended that the legal representatives have the right to contest the substitution application and that the matter should be remanded to the ITAT for proper consideration.

4. The appellant's counsel did not object to setting aside the order under appeal and remanding the matter to the ITAT for further proceedings, including the substitution of legal representatives.

5. The Court acknowledged that an order in favor of or against a deceased person is considered null and void. It was undisputed that the respondent had passed away before the appeal was filed, making it necessary to substitute the legal representatives for a valid legal process.

6. Consequently, the Court deemed it appropriate to set aside the order under appeal and remand the matter back to the ITAT for a fresh order in compliance with the law.

7. The Court ordered the remand of the matter to the ITAT for issuing a fresh order after the substitution of the person representing the deceased's estate, ensuring legal proceedings are conducted correctly.

8. As a result, the appeal and the application to include legal representatives on record were both disposed of accordingly, with the matter being remanded for further proceedings.

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