TaxTMI 
TaxTMI 
2026 (9) TMI 1981
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....on 260A of the Income Tax Act, 1961 [for short 'the Act'] arising out of order dated 26.07.2024 passed by the Income Tax Appellate Tribunal, 'D' Bench, Ahmedabad, [ for short 'the Tribunal'] in ITA No. 292/Ahd/2024 for A.Y. 2017-18 proposing following substantial question of law: "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal is justified in holding assessment proceedings initiated in the name of deceased assessee as void ab-initio and assessment proceedings are liable to be set aside without appreciating the fact that the Legal heir of the assessee failed to update PAN data base of the system by following the procedure laid down for linking Legal heir to the deceased assessee, without which ....
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....and therefore, the same was a valid notice. 3.2 The Assessing Officer proceeded to complete the assessment in name of the deceased asssessee by making addition of Rs. 3,75,68,307/- as unexplained income under section 68 of the Act. 3.3 Being aggrieved, the legal heir of the assessee preferred an appeal before the CIT(A) who allowed the appeal considering the fact that the return was filed by the legal heir of the deceased assessee as well as the necessary correction was made in the data base on the E-Portal of the department. 3.4 Being aggrieved by the order of the CIT(A), the Department preferred an appeal before the Tribunal. The Tribunal, after considering various decisions on the issue, dismissed the appeal by observing as unde....
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.... u/s 143(3) of the Act." 4. Considering the finding of fact recorded by the Tribunal and in view of the undisputed fact that the return was filed for the relevant assessment year by the legal heir of the deceased asssessee by duly intimating the Department that the assessee had expired, the Assessing Officer was not justified in issuing notice under section 143(2) of the Act in spite of knowing that the assessee had expired in the Year 2016 and notice ought to have been issued on the legal heir of the deceased assessee who had filed the return of income. 5. This Court in case of Yash Nirupam Nanavaty L/R of Late Asha Nirupam Nanavaty in Special Civil Application No. 18223 of 2019 in similar facts has held as under: "9. The fa....
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.... High Court in case of Savita Kapila Versus Assistant Commissioner of Income Tax in W.P. (C) No.3258 of 2020 wherein, the decision of Bombay High Court in case of Sumit Balkrishna Gupta Versus Assistant Commissioner of Income Tax reported in [2019] 414 ITR 292 and the decision of this Court in case of Chandreshbhai Jayantibhai Patel (Supra) were followed. In case of Chandreshbhai Jayantibhai Patel (Supra), this Court has held as under: "The question that therefore arises for consideration is whether the notice under Section 148 of the Act issued against the deceased assessee can be said to be in conformity with or according to the intent and purpose of the Act. In this regard, it may be noted that a notice under section 148 of the ....