2026 (5) TMI 1249

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or A.Y. 2018-19. 2. The Department has raised the following grounds of appeal: "(a) The Ld. CIT(A) has erred in law and on facts in quashing the assessment proceedings wherein an addition of Rs. 1,11,30,304/- was made as per the provisions of section 69A of the Act on account of cash credit in the Bank Account of the assessee. (b) The Ld. CIT(A) has erred on facts and law by not taking into cognizance the fact that the AO was not aware that the assessee has passed away during the proceedings under section148A(d). However, the moment it came to his cognizance he took corrective measure and added the name of Legal heir to the pending proceedings. (c) The appellant craves leave to add, alter and/or to amend all or....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Act having been issued in the name of a deceased person renders the entire reassessment proceedings without jurisdiction. The CIT(Appeals) observed that once the Assessing Officer was made aware of the death of the assessee, it was incumbent upon him to issue fresh notice under section 148 of the Act in the name of the legal representative in terms of section 159(2)(b) of the Act. In the absence of such valid notice, the proceedings were held to be void ab initio and the assessment was quashed. Consequently, the grounds on merits were not adjudicated. 5. The Department is in appeal before us against the order passed by CIT(Appeals) allowing the appeal of the assessee. 6. We have heard the rival submissions and perused the materia....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....426 ITR 502 (Delhi High Court) has held that reopening notice issued to a dead person is void and all consequential proceedings are liable to be quashed. 10. In the present case, the Assessing Officer, despite being aware of the death of the assessee, failed to issue a fresh notice under section 148 to the legal heir. The invocation of section 159 of the Act at a later stage without curing the jurisdictional defect is legally unsustainable. Section 159 of the Act permits continuation of validly initiated proceedings, but it does not authorize initiation of proceedings against a deceased person. 11. We also find that the reliance placed by the Revenue on the decision in Haresh Dayashankar in ITA No. 684/Ahmedabad/2025 is distinguishabl....