TaxTMI 
TaxTMI 
2025 (12) TMI 1702
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....ces of the case, the Learned CIT(Appeals) erred in setting aside the assessment back to the file of the Assessing Officer. 3. The Learned CIT(Appeals) is legally incorrect by remitting back to the Assessing Officer without adjudicating the legal and factual grounds even though the submissions were made. 4. On the facts and circumstances of the case, the Learned CIT(A) is not justified in not considering the ground that the notice issued u/s. 148 of the Act in the name of the deceased person is invalid and hence erred in completing the assessment on such invalid notice. 5. On the facts and circumstances of the case, the Assessment is void as the Assessment is made on the deceased person even though the Assessing Officer was intimated about the demise of the assessee by the legal heir of such deceased person on 22.03.2022 1.e. before completion of the assessment proceedings. Therefore the AO would have completed the assessment in the hands of the legal heir but not in the hands of the deceased person. 6. Without prejudice to the above grounds, On the facts and circumstances of the case, the Learned CIT(A) is not justified in not considering the gro....
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....was duly served upon the assessee. As the assessee failed to comply with the said notice and did not file his return of income within the stipulated time period, therefore, the AO issued notices under section 142(1) of the Act, which too were not responded by the assessee. Also, the reference made by the AO to the designated Verification Unit (VU) to serve notices to the assessee in person remained futile. 4. Accordingly, the AO, based on the aforesaid facts, proposed to conclude the assessment to the best of his judgment under section 147 r.w.s 144 r.w.s 144B of the Act. Considering the merits of the case, a draft assessment order was served upon the assessee along with a show cause notice (SCN), dated 22/03/2022. 5. In reply, Smt. Dasari Sai Annapurna, Legal Heir of late Shri Dasari Gopikrishna Reddy, i.e., the assessee, vide her letter dated 25/03/2022 submitted before the AO that the assessee had passed away on 17/05/2021, i.e., after commencement of the assessment proceedings in March, 2021. On merits, it was submitted by her that though the Joint Development Agreement (JDA) was entered into and registered on 30/05/2014, but the construction was delayed and the project c....
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....h circumstances existing in the case, the matter is restored back to the Assessing Officer for making a fresh assessment in the light of the documentary evidences as may be placed before him and after making such inquiries as may be considered expedient by the AO. The appellant shall be given adequate opportunity to adduce evidences and offer explanation as may be considered expedient to defend its claim. Further, the appellant is also directed to cooperate with AO in completion of fresh assessment. 6.2 With these observations, the matter is remitted back to AO for fresh assessment in accordance with law. 7. In the result, the appeal of the assessee is allowed for statistical purposes." 7. The assessee, being aggrieved with the order of the CIT(A), has carried the matter in appeal before us. 8. We have heard the Learned Authorised Representatives of both parties, perused the orders of the lower authorities and the material available on record. 9. Sri MV Prasad, Chartered Accountant, the Learned Authorised Representative (for short, "Ld. AR") for the assessee, at the threshold of hearing of the appeal, submitted that as the assessee, viz. Shri Dasari Gopik....
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....nior Departmental Representative (for short, "Ld. Sr. DR"), relied upon the orders of the lower authorities. The Ld. Sr. DR submitted that as the assessee had expired after the notice under section 148 of the Act, dated 31/03/2021, was issued, therefore no infirmity arises from the validity of the jurisdiction that was framed by the AO for initiating the reassessment proceedings at the relevant point of time, i.e., during the lifetime of the assessee. 11. We have heard the Learned Authorised Representatives of both parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the Ld. AR to drive home his contentions. 12. At the threshold, we may herein observe that the judgment of the Hon'ble High Court of Madhya Pradesh in the case of Sitaram Raikwar vs. National Faceless Appeal Centre (supra) as had been pressed into service by the Ld. AR, being distinguishable on facts, will not assist his case. Although, in the case before the Hon'ble High Court the assessment order was passed in the name of the deceased assessee, despite the legal heirs of the assessee ha....
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...., and any proceedings regarding the deceased assessee shall be continued against the legal representatives from the stage at which it stood on the date of the death of the deceased. Our aforesaid view is supported by section 159 of the Act, which reads as under: "159. (1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. (2) For the purpose of making an assessment (including an assessment, reassessment or recomputation under section-147) of the income of the deceased and for the purpose of levying any sum in the hands of the legal representative in accordance with the provisions of sub-section (1),- (a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased; (b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative; and ....