Assessment orders against deceased individuals are invalid; proper legal representation is essential for fair adjudication.

ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2012-13 dated 28.06.2024, which has been passed against the assessment order u/s 143(3)/147 of the Act, dated 06.12.2019.

1.1. The Registry has informed that the appeal is barred by limitation of time by 37 days and no application seeking condonation of delay has been filed. However, we find that since the assessee had expired and proper representation was not made before the Ld. CIT(A) and the legal representative mentioned as Sri Nitesh Mandhyan is different from the legal representative mentioned in the assessment order as Sri Manish Mandhyan, therefore, on account of death of the assessee, we condone the delay and admit the appeal for adjudication on merits. None appeared on behalf of the assessee and the case was heard with the assistance of the Ld. Sr. DR.

2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. Because, the assessee had died on 05/11/2016. The information of his death was supplied to the AO and the assessing officer has also acknowledged the receipt of the information in the assessment order. Despite the knowledge of the same, the assessment order as well as the first appeal order has been passed in the name of the dead person Shri Hiranand Mandhyan. Hence, the reopening of the assessment and continuation of the reassessment proceedings is bad in law and in direct contradiction to the judgment in Rupa Shyam Sunder Dhumatkar vs ACIT (2020) 420 ITR 256 (Bom.), Alamelu Veerappan vs. ITO (2018) 257 taxmann.com 72 (Mad.). The order passed in the name of the death person shall be quashed in toto.

2. Because, it is a trite law that notice for re-opening of the assessment under section 148 against the dead person is invalid. Same is held in the case of Neelam Dhingra vs. DCIT ( Trib- Delhi-Bench -E ).

3. That, the assessment order has been passed without DIN. In the case of Gajendra Singh Vs DCIT ( ITAT Delhi ) ITAT Delhi held that simultaneous issue of the DIN number is insignificant and superfluous exercise, in the absence of mentioning the DIN number on the body of AO’s order. Thus, Assessment order without DIN is void ab initio.

4. Because, that the proceedings under section 147 of the Act was reopened only on the basis of information received from office of DDIT (Investigation), as evident from the assessment order. This information was only the information and this information cannot become the reason to believe that income has escaped assessment.

5. Because, the Ld. CIT appeal was not justified in confirming the addition of Rs 17,84,896/- without appreciating that the appellant is regularly investing in shares via. recognised Share broker and recognised stock exchanges and all the details with regards to transaction was through banking channel.

6. Because, the Ld. CIT appeal was not justified in confirming the addition without appreciating that where the documentary evidence furnished by assessee clearly supported the claim of exemption under section 10(38) on account of sale of securities that assessee entered into genuine transaction of sale of shares through recognized exchange upon which STT had also been paid and there was no other evidence available on record against assessee so as to make the impugned addition under section 68, accordingly, addition was to be deleted.”

3. Brief facts of the case as culled out from the records are that the assessee had filed return of income showing total income of Rs.5,82,950/-. The case was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act dated 29.03.2019. In response to the notices issued, the assessee’s legal representative i.e. his son Sri Manish Mandhyan appeared mentioning the information about the date of death of his f