ITAT quashed penalty proceedings under section 270A initiated...

ITAT quashed penalty proceedings under section 270A initiated against deceased assessee ab-initio. Despite receiving notice of assessee's death from legal heir on 28.05.2021, Assessing Officer proceeded to pass penalty order on 26.08.2021 against the deceased person. Tribunal held that once death was brought to AO's knowledge, legal heir should have been brought on record before passing any order. Court established that no order can be validly passed against deceased person under settled legal principle. CIT(A)'s direction was set aside, AO's penalty order was cancelled, and assessee's appeal was allowed, rendering the entire penalty proceedings void from inception.