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TMI Blog2025 (5) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Assessing Officer (for short "A.O.") u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (for short "the Act") dated 23.02.2022 for A.Ys. 2016-17 and 2017-18. 2. As common issues are involved in the captioned appeals, therefore, the same are being taken up and disposed of vide this consolidated order. 3. We shall first take up the appeal filed by the assessee in ITA No.155/Hyd/2025 wherein the impugned order has been assailed on the following grounds of appeal before us: "1. The Learned CIT(A) erred in setting aside the assessment for fresh consideration without appreciating the fundamental fact that the original assessment was completed on a deceased person, rendering it a nullity in the eyes of law. 2. The Learned CIT(A) mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation from the bank, it was observed by the A.O. that the widow of the assessee had approached for a change in the nominee details in the bank account of the assessee. Considering the aforesaid fact, the A.O. issued notice u/s 133(6) of the Act to Smt. Lakshmi Chelikani, i.e widow of the assessee to explain why she may not be impleaded as a legal heir. However, as Smt. Lakshmi Chelikani (supra) did not respond to the aforesaid notice, therefore, the A.O. passed an order dt.19.01.2022 treating her as the legal heir of the assessee (since deceased). 6. During the course of survey proceedings as well as the Special Audit conducted in the case of the assessee u/s 142(2A) of the Act, the A.O. observed that M/s. VSMPL i.e. the company in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarity, the observations of the CIT(A) are culled out as under: "From the death certificate in respect of the appellant furnished by the representative assessee during appellate proceedings, it is noticed that Sri. Rajasekhar Chelikani(appellant) passed away on 29.08.2020. The show cause notices are undisputedly issued after the death of appellant. The assessment orders u/s. 147 r.w.s. 144 were passed after the death of the appellant. In such a scenario, it can be said that the representative assessee deserves to get a fresh opportunity of hearing before the AO. The assessment u/s. 144 of the Act were passed as there was no response during the assessment proceedings. However, owing to the facts and circumstances of the case, the represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the eye of law. It was therein observed that the legal heirs are under no statutory obligation to intimate the death of the assessee to the department. Further, the Hon'ble High Court had observed that the requirement of issuing notice to a correct person is not a mere procedural requirement but is a condition precedent for the impugned notice being valid in law. The Hon'ble High Court after drawing support from a host of judicial pronouncements, had observed, that the sine qua non for acquiring jurisdiction to reopen an assessment is that such notice should be issued in the name of a correct person. It was further observed that a notice issued in the name of a dead person is also not protected either by the provisions of Section 292B of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble High Court are culled out as under: "7. The issue of a notice under section 148 of the Act is a foundation for reopening of assessment. The sine qua non for acquiring jurisdiction to reopen an assessment is that such notice should be issued in the name of the correct person. This requirement of issuing notice to a correct person and not to a dead person is not a merely a procedural requirement but is a condition precedent to the impugned notice being valid in law. Thus, a notice which has been issued in the name of the dead person is also not protected either by provisions of section 292B or 292BB of the Act. This is so as the requirement of issuing a notice in the name of correct person is the foundational requirement to acq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly quashed.
16. Resultantly, the appeal filed by the assessee is allowed in terms of our aforesaid observations.
ITA No.156/Hyd/2025 for A.Y. 2017-18
17. As the facts and the issue involved in the present appeal remain the same as were there before us in the assessee's appeal for A.Y. 2016-17 in ITA No.155/Hyd/2025, therefore, the order therein passed shall apply mutatis mutandis for disposing of the present appeal i.e ITA No.156/Hyd/2025 for A.Y. 2017-18.
18. Resultantly, the appeal filed by the assessee is allowed in terms of our aforesaid observations.
19. To sum up, both the appeals of assessee are allowed in terms of our aforesaid observations.
Order pronounced in the Open Court on 29th April, 2025. X X X X Extracts X X X X X X X X Extracts X X X X
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