Assessment Order Quashed: Notice Issued in Deceased Person's Name Invalid. Assessee's Appeal Allowed.

The tribunal quashed the assessment order due to the invalidity of the notice issued under section 148 in the name of a deceased person. The appeal of the assessee was allowed, and the order was pronounced in the open court on 15/05/2020.

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Issues Involved:
1. Validity of assessment proceedings under sections 147/148 of the Income Tax Act, 1961.
2. Service of notice under section 148 and the validity of the assessment framed in the name of a deceased person.
3. Addition of Rs. 16,00,000 as undisclosed income.
4. Initiation of penalty proceedings under section 271(1)(c) of the Income Tax Act, 1961.
5. Additional ground regarding the issuance of notice under section 148 in the name of a deceased person.

Detailed Analysis:

1. Validity of Assessment Proceedings under Sections 147/148:
The assessee challenged the validity of the assessment proceedings initiated under sections 147/148, arguing that the notice was not served on the correct address. The tribunal noted that the notice under section 148 dated 14.03.2016 was issued in the name of the deceased assessee who had already expired on 25th April 2015. The tribunal found that the notice was not served on the legal representative, and the assessment was framed ex parte without valid service of notice. Consequently, the tribunal held that the notice issued under section 148 itself was not valid, rendering the entire assessment proceedings invalid.

2. Service of Notice under Section 148 and Validity of Assessment in the Name of Deceased Person:
The tribunal observed that the notice under section 148 was issued after the death of the assessee and was not served on the legal representative. The tribunal referenced the Hon'ble Gujarat High Court's decision in Durlabhbhai Kanubhai Rajpara vs. ITO, which held that a notice issued to a deceased person is invalid and cannot confer jurisdiction on the Assessing Officer. The tribunal concluded that the assessment framed in the name of the deceased assessee was invalid for want of a valid notice, and the proceedings were quashed.

3. Addition of Rs. 16,00,000 as Undisclosed Income:
The tribunal did not specifically address the issue of the addition of Rs. 16,00,000 as undisclosed income, as the assessment order itself was quashed due to the invalidity of the notice issued under section 148.

4. Initiation of Penalty Proceedings under Section 271(1)(c):
Similarly, the tribunal did not delve into the initiation of penalty proceedings under section 271(1)(c) since the assessment order was quashed, making the penalty proceedings infructuous.

5. Additional Ground Regarding Issuance of Notice under Section 148 in the Name of Deceased Person:
The tribunal admitted the additional ground raised by the assessee, which was purely legal in nature and did not require new facts. The tribunal found that the notice issued under section 148 was in the name of the deceased assessee and was not served on the legal representative. Citing the Hon'ble Supreme Court's decision in NTPC vs. CIT, the tribunal held that the notice issued to a dead person is invalid and quashed the assessment order.

Conclusion:
The tribunal quashed the assessment order due to the invalidity of the notice issued under section 148 in the name of a deceased person. As a result, the other grounds raised by the assessee became infructuous. The appeal of the assessee was allowed, and the order was pronounced in the open court on 15/05/2020.

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