Facts of the Case

The appeals were filed by the husband and legal heir of Late Sabita Prasad for Assessment Years 2012-13 and 2013-14 against orders passed by the appellate authorities. The assessment orders for both years were originally passed on 28.12.2017. The assessee expired on 12.12.2020, as evidenced by the death certificate placed on record. However, the appellate orders for Assessment Year 2012-13 dated 08.07.2024 and for Assessment Year 2013-14 dated 16.02.2024 were passed after the death of the assessee without bringing the legal representative on record.

Issues Involved

Whether appellate proceedings and orders passed after the death of the assessee without substituting the legal representative are valid, and whether the matter requires restoration for fresh adjudication after bringing the legal heir on record.

Petitioner’s Arguments

The assessee’s authorised representative submitted the death certificate of the assessee and contended that the appellate orders were passed after the demise of the assessee without impleading the legal representative. It was argued that such proceedings are contrary to law and principles of natural justice and therefore liable to be set aside.

Respondent’s Arguments

The Revenue relied on the orders passed by the lower authorities.

Court Order / Findings

The ITAT Ranchi observed that both appellate orders were admittedly passed after the death of the assessee and that the legal representative had not been brought on record at any stage. The Tribunal held that continuation of proceedings without substituting the legal representative is not permissible in law. In the interest of justice, the Tribunal deemed it appropriate to restore the issues to the file of the Assessing Officer for fresh adjudication after bringing the legal representative of the assessee on record and issuing statutory notices accordingly.

Important Clarification

The Tribunal clarified that proceedings under the Income-tax Act cannot validly continue against a deceased assessee unless the legal representative is properly brought on record. Any orders passed without such substitution are unsustainable and liable to be set aside.

Final Outcome

Both appeals filed by the assessee were partly allowed for statistical purposes, and the matters were restored to the file of the Assessing Officer for readjudication after bringing the legal representative of the deceased assessee on record and granting due opportunity of hearing.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769079543_LATESABITAPRASADLHDURGAPRASADRANCHIVS.ITOWARD31RANCHI.pdf

 

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