2026 (3) TMI 1745

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.... the assessee are as under: "1. On facts and in law, the Ld. CIT(A) erred in assessing the income of the deceased Late Shri Vasant Janardan Patki in the status of an "Association of Persons (AOP)" instead of the status of "AJP-Estate of Deceased" as correctly adopted by the Assessing Officer. 2. The Ld. CIT(A) exceeded jurisdiction u/s 251(1) & 251(2) by changing the assessed status from AJP to AOP without issuing any show-cause notice of enhancement, rendering the order bad in law, void ab initio and liable to be quashed. 3. The Ld. CIT(A) failed to appreciate that an AOP cannot be constituted in the case of a deceased individual's estate, since the essential element of volition and common purpose among two o....

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....ection 168 (assessment of executors). The direction is therefore bad in law and without jurisdiction. 10. The CIT(A) failed to appreciate that a Probate Order passed by a competent court has binding evidentiary value and conclusively determines the status of executors. Ignoring such binding judicial determination is a serious legal error and renders the order void." 3. Facts of the case, in brief, are that the assessee filed its return of income for the AY 2022-23 declaring total income at Rs.11,05,495/-. The CPC, while processing the return u/s 143(1) of the Act, accepted the income declared by the assessee but computed the tax at the rate applicable to artificial juridicial person (AJP). This resulted in the demand of Rs.3,79,....

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..../2021 dated 29.06.2022 and Commissioner of Income Tax vs. G.B.J. Seth (1982) 133 ITR 192 (MP). 6. On the other hand, the Ld. Sr. DR of the revenue has supported the order of the CIT(A). 7. We have heard both parties and perused the materials on record. We find that similar issue had come up for consideration in case of estate of Late Harkishin Bhojraj Chanrai (supra). In the said case there were two executors. The assessee had computed tax as per normal tax slab rates. However, the CPC computed tax liability at maximum marginal rates. The ITAT allowed appeal of the assessee by deciding as under: "09. We have carefully considered rival contentions and perused orders of lower authorities. Undisputed facts though the assessee ha....