Invalid reassessment proceedings due to deceased assessee; ITAT Delhi quashes order under section 148.

The ITAT Delhi held that the reassessment proceedings, notice under section 148, and subsequent actions were invalid as they were conducted in the name of a deceased assessee. The reassessment order was quashed, partially allowing the assessee's appeal. Other grounds were not addressed due to the invalidity of the proceedings.

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Issues involved:
The issues involved in this case are the validity of the notice issued under section 148, continuation of proceedings under section 147 in the name of legal heirs, and the applicability of section 292BB in the reassessment proceedings.

Validity of Notice u/s 148:
The appeal was filed against the order of CIT(A) Ghaziabad for AY 2009-10, challenging the validity of the notice issued under section 148. The Assessing Officer initiated reassessment proceedings and issued the notice in the name of a deceased person. The legal representative of the assessee argued that the notice and subsequent proceedings were void ab initio due to this error. Despite being informed of the death of the assessee, the Assessing Officer proceeded with the reassessment order in the name of the legal heir, which was deemed invalid.

Continuation of Proceedings u/s 147:
The appeal also raised the issue of the continuation of proceedings under section 147 in the name of legal heirs without a valid service of notice under section 148 within the limitation period. The legal representative contended that the proceedings were invalid as the notice was issued in the name of the deceased assessee, and the Assessing Officer failed to cancel the proceedings despite being informed of the death.

Applicability of Section 292BB:
The legal representative relied on judgments of the High Court, including the case of Vipin Walia vs. ITO, to argue that section 292BB was not applicable in this case since the notice was issued in the name of a deceased assessee. The reassessment proceedings were deemed to be invalid, and the reassessment order was quashed based on this argument.

Conclusion:
The ITAT Delhi held that the initiation of reassessment proceedings under section 147, issuance of notice under section 148, and subsequent proceedings, including the reassessment order, were invalid and deserved to be quashed. The appeal of the assessee was partly allowed based on these findings. Other grounds of the assessee were not adjudicated upon due to the quashing of the entire proceedings.

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