Tribunal upholds assessment despite clerical error, deems it curable under Section 292B. Reopening based on factual error. Remitted to CIT(A).

The Tribunal upheld the assessment despite the clerical error of addressing the deceased, deeming it a curable mistake under Section 292B. The reopening of the assessment was also upheld, as it was based on a factual error pointed out by an audit objection and not a change of opinion. The case was remitted back to the CIT(A) for a decision on the merits.

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Issues Involved:
1. Validity of the assessment made on a dead person.
2. Validity of the reopening of assessment under Section 147 of the Income Tax Act.

Detailed Analysis:

1. Validity of the Assessment Made on a Dead Person:
The assessee passed away, and the AO issued a notice under Section 148 to the legal heir, Sri D.V. Subba Rao. However, subsequent notices and the assessment were incorrectly addressed to the deceased, C.D.S. Prakasa Rao. The legal heir responded to these notices and participated in the proceedings without objection. The AO's error of addressing the deceased was deemed a clerical mistake curable under Section 292B of the Income Tax Act, as the intent and purpose of the Act were fulfilled by involving the legal heir in the assessment process. The Tribunal cited several cases, including the Hon’ble Supreme Court's decision in Sky Light Hospitality LLP Vs. ACIT, to support this view. Therefore, the assessment was upheld despite the initial clerical error.

2. Validity of the Reopening of Assessment Under Section 147:
The AO reopened the assessment based on an audit objection regarding unpaid service tax grouped under sundry creditors, which should have been disallowed under Section 43B of the Income Tax Act. The CIT(A) quashed the notice under Section 148, holding that the reopening was based on a change of opinion without new material. However, the Tribunal found that the AO had not examined the issue during the original assessment, meaning there was no change of opinion. The Tribunal referenced the Hon’ble Supreme Court's decision in CIT Vs. P.V.S. Beedies Pvt. Ltd., which permits reopening based on audit objections pointing out factual errors. The Tribunal also cited the Hon’ble Supreme Court's decision in Rajesh Jhaveri Stock Brokers P. Limited, emphasizing that the AO's belief of income escapement within four years suffices for reopening. Consequently, the Tribunal upheld the reopening of the assessment and remitted the matter back to the CIT(A) to decide on the merits of the case.

Conclusion:
The Tribunal upheld the assessment despite the clerical error of addressing the deceased, considering it a curable mistake under Section 292B. The reopening of the assessment was also upheld, as it was based on a factual error pointed out by an audit objection and not a change of opinion. The case was remitted back to the CIT(A) for a decision on the merits.

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