Reassessment notice issued to deceased assessee after death, without notice to legal representatives under Section 159(2)(b), is null and void ab initio; defect not curable under Sections 292B/292BB.

ORDER

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 27.5.2025 vide DIN & Order No.ITBA/NFAC/S/250/2025-26/1076474053(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2016-17.

2. The assessee has raised the following grounds of appeal:

3. The assessee late Shri Jadagadder Pakkerappa represented by his wife and legal heir Smt. Sarojamma filed this appeal against the order of ld. CIT(A)/NFAC dismissing the appeal on the ground that the assessee neither produced any evidence nor complied with the various notices issued during the entire appellate proceedings. Brief facts of the case are that as per the information available on record, the AO observed that the assessee had sold an immovable property amounting to Rs.60,00,000/- during the year under consideration. However, on verification of e-filing portal, it was noticed that the assessee had not filed any return of income for the year under consideration. Therefore, in the opinion of the AO, this amount of Rs.60 lakhs remained undisclosed. Thereafter, the case had been selected for scrutiny proceedings and accordingly notice u/s 148 of the Act was issued and served on 8.3.2023 through electronic mode. Thereafter, notices u/s 142(1) of the Act along with show cause notices were issued to the assessee from time to time. However, despite offering sufficient opportunities to explain the above transaction, the assessee did not respond to any of the notices. As the assessee made no submission explaining the aforesaid transaction inspite of giving ample opportunity of being heard, the AO treated the entire amount of Rs.60,00,000/- as short term capital gain and added the same to the income of the assessee. The AO completed the assessment proceedings on a total assessed income of Rs.60,00,000 u/s 147 r.w.s. 144 r.w.s. 144B of the Act.

4. Aggrieved by the order of AO passed u/s 147 r.w.s. 144 of the Act dated 12.1.2024, the legal heir of the assessee Smt. Sarojamma preferred an appeal before the ld. CIT(A)/NFAC. However, due to the technical issues on the Income Tax Portal, as she was unable to add her name as legal heir/authorized person, she was compelled to file the appeal using the login credentials of her deceased husband.

5. The ld. CIT(A)/NFAC dismissed the appeal of the assessee by observing that during the course of appellate proceedings, various notices were issued from time to time viz. on 7.11.2024, 12.12.2024 and finally on 7.5.2025. However, no submissions were made during the entire appellate proceedings. As the assessee during the entire appellate proceedings did not comply with the statutory notices, the ld. CIT(A)/NFAC held that assessee is not interested to pursue this appeal and in the absence of any reply from the assessee, the ld. CIT(A)/NFAC was left with no option but to decide the matter ex-parte based on material on record. Finally, the ld. CIT(A)/NFAC held that assessment order passed by the AO u/s 144 of the Act resulting in the assessed income amounting to Rs.60 lakhs based on his findings and proper adjudication is quite in order and the same was confirmed.

6. Again, aggrieved by the order of ld. CIT(A)/NFAC, the legal heir of the assessee Smt. Sarojamma filed the present appeal before this Tribunal. The legal heir has also filed two numbers of paper books containing therein the written submission, death certificate of the assessee as well as case laws relied upon by her. The legal heir Smt. Sarojamma has also filed an affidavit stating the reasons for not appearing before the lower authorities.

7. Before us, the ld. A.R. of the assessee at the outset vehemently contended that the