Reassessment Order Quashed: Issued in Deceased's Name, Procedural Lapses in Income Tax Case Prompt Court Action.

The HC set aside the reassessment order issued under Section 147 read with Section 144 of the Income Tax Act, 1961, as it was issued in the name of a deceased individual. The Court found procedural lapses by the National Faceless Assessment Centre, as the appellant's submissions and relevant information were disregarded. Consequently, the appeal and writ petition were allowed, quashing the reassessment order and disposing of the connected application.

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Issues:
Challenge to Assessment Order under Income Tax Act - Validity of ex parte assessment order in the name of deceased person.

Analysis:
The appellant challenged an Assessment Order passed under Section 147 read with Section 144 of the Income Tax Act, 1961, dated 26.08.2021, after the learned Single Judge declined to entertain the writ petition, advising the appellant to avail remedies under the Act. The appeal raised the issue of the validity of the ex parte assessment order dated 26th August, 2021, passed in the name of a deceased person, questioning the procedure adopted by the Faceless Assessment Centre. The appellant, daughter of the deceased, had informed the Assistant Commissioner of Income Tax about her mother's demise and her inability to provide transaction-related documents. The Court noted that the Assessing Officer failed to consider the appellant's grievance and submissions, leading to the prima facie satisfaction that the order passed ignored relevant information, warranting the admission of the appeal and fresh notice to the respondents.

The Court observed that there was no evidence to refute the appellant's representation regarding her mother's demise and lack of knowledge about the transactions. Despite the appellant's willingness to cooperate with the Income Tax Department, her submissions were disregarded in the reassessment order by the National Faceless Assessment Centre. The reassessment was conducted without considering crucial details and the appellant's responses to earlier notices issued by the Assessing Officer, indicating a procedural lapse in the assessment process.

Based on the above findings, the Court concluded that the reassessment order was legally unsustainable. Consequently, the appeal and the writ petition were allowed, setting aside the order passed in the writ petition and quashing the re-assessment order. As a result, the connected application was also allowed and disposed of, bringing the matter to a close.

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