Reopening of tax reassessment initiated after taxpayer's death held invalid and quashed as void per binding precedent

ITAT PUNE - AT held that reopening assessment against a deceased assessee was invalid and must be quashed. The tribunal found the assessee's death was evident from the case file placed before the NFAC, and, applying binding HC precedent on proceedings against deceased persons, set aside the impugned proceedings. The reassessment initiated after death was therefore declared void and disposed of accordingly.

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The appeal challenges reopening under section 147 read with section 144 of the Income-Tax Act for AY 2016-17, arising from NFAC Order No. ITBA/NFAC/S/250/2023-24/1058828465(1) dated 18.12.2023. The decisive factual and legal issue is the validity of reassessment where the assessee had died on 21.01.2020, while the section 148 notice was issued on 22.03.2021. The record (page-13) established the fact of death and was before NFAC. Applying the precedent in Savita Kapila, Legal Heir of Late Sh. Mohinder Paul Kapila vs. ACIT (2020) 426 ITR 502 (Del.), the tribunal held that proceedings instituted after death cannot stand: "initiated the impugned proceedings against a dead person have to be quashed indeed". In view of that finding, all other merit-based pleadings were rendered academic, and the reassessment proceedings were set aside.

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