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TMI Blog2024 (11) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... s liable to be quashed for noncompliance with stipulated procedures for service of notice in assessment proceedings as well as in appellate proceedings. There is no confirmation of service of notice to assessee/ appellant by way of physical service of notice/ mahazar report. 4. The Assessing Officer has erred in making addition of Rs. 1,57,00,000/- to the income of the appellant. The addition to the income is bad both in law and on facts and is liable to be deleted in entirety. 5. The Assessing Officer and appellate authority have not appreciated the facts of the case. On review of the facts and law applicable, it will be clear that the addition made has no basis and is liable to be deleted in entirety. 6. The appellate authority has not given any cogent reason in rejecting the evidence submitted at the time of filing the appeal and has passed orders without giving merit or credit to the materials submitted at the time of filing the appeal before the Commissioner of Income-tax Appeal. 7. The Assessing Officer had erred in holding that the provisions of Section 68 of I.T. Act, 1961 are applicable. There being no unexplained credit and in fact the credit having been duly ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name of Mishrilal Sharnickraj, PAN: ADOPS 5835Q. The L/R of the assessee Shri Nirmal Kumar holding PAN ACLPD2715J filed appeal before the CIT(Appeals) on 25.01.2018. 3. The ld. CIT(Appeals) issued 14 notices, however there was no reply from the assessee's side, therefore he decided the case on the basis of material available before him and confirmed the addition of Rs. 1.57 crores u/s. 68 of the Act. Aggrieved, the L/R of the assessee is in appeal before the ITAT. 4. At the outset, the ld. AR of the assessee strongly submitted that the order passed by the AO in the name of deceased assessee is not sustainable as the assessee died on 25.07.2015 and Shri Nirmal Kumar, L/R of the assessee filed the income tax return on behalf of the assessee after adding in the income tax web portal. The turnover reported in the return is approx. Rs. 6.8 crores which was audited and Form 3CB and 3CD were uploaded in the income tax web portal. The AO issued notice u/s. 143(2) and passed order u/s 143(3) in the name of deceased assessee (Mishrilal Sharnickraj). Before passing the assessment order, the AO had the entire information regarding death of the assessee. The ld. AR further submitted that thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative assessee, it is not possible to file return of income. After submitting necessary documents for getting registered as representative assessee, the assessee has uploaded the L/R certificate. Further in the web portal under the sub-head 'Deceased (Legal Heir)', firstly representative has to register after filling details like copy of PAN of deceased, copy of death certificate, copy of L/R proof as per norms, etc. These are mandatory documents before getting registered as L/R. After approval by the department, the assessee was able to file return of the deceased assessee and signed digitally. It clearly shows that the assessee's L/R had already informed to the department before filing the income tax return of the deceased assessee. As per acknowledgement of the return, the jurisdictional AO is mentioned as Ward 3(2)(4), Bangalore. However, the assessment order has been passed by Circle 5(2)(1), Bangalore. Therefore it was in the knowledge of the AO that the assessee had died and the AO wrongly passed the order in the name of deceased/non-existent assessee. The argument of the ld. DR that while filing the return of income, the representative assessee did not disclose his capac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son is invalid, unless the legal representative submits to the jurisdiction of the Assessing Officer without raising any objection." Consequently, in view of the above, a reopening notice under section 148 of the Act, 1961 issued in the name of a deceased-assessee is null and void. Also, no notice under section 148 of the Act, 1961 was ever issued upon the petitioner during the period of limitation. Consequently the proceedings against the petitioner are barred by limitation as per section 149(1)(b) of the Act, 1961. As in the present case proceedings were not initiated/pending against the assessee when he was alive and after his death the legal representative did not step into the shoes of the deceased assessee, section 159 of the act, 1961 does not apply to the present case. *** *** *** 30. Section 159 of the Act, 1961 applies to a situation where proceedings are initiated/pending against the assessee when he is alive and after his death the legal representative steps into the shoes of the deceased assessee. Since that is not the present factual scenario, section 159 of the Act, 1961 does not apply to the present case. 31. In Alamelu Veerapan v. ITO [2018] 12 ITR-OL 95 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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