Notice u/s 148 issued to deceased assessee is invalid and void ab initio; assessment thereon quashed. No statutory duty on legal heirs to intimate death; mere return filing does not validate jurisdiction.

ORDER

PER C.N. PRASAD, JM,

This appeal is filed by the assessee Neeraj Kataria represented by Legal Heir Sh. Ram Prakash Kataria against the order of the ld. CIT(A)/NFAC, Delhi dated 22.07.2025 for the A.Y.2019-20.

2. The assessee has raised the following ground of appeal :-

“1. On the facts and in the circumstances of the case and in law the Ld. NFAC/ CIT(A) erred in only setting aside but not quashing the illegal assessment order passed u/s.147 r.w.s. 144 of the Act on a deceased person.”

3. The Ld. Counsel for the assessee at the outset submitted that the assessee Late Neeraj Kataria expired on 31.12.2016 thereafter, the AO initiated proceedings u/s.147 based on certain information that the assessee received enhanced compensation and interest on acquisition of lands by the land acquisition officer and issued notice u/s.148 of the Act on the assessee who is a dead person. The AO completed the assessment u/s.147 r.w. 144 r.w. 144B of the Act determining the income of the assessee at Rs.3,65,47,361/- by assessing the interest on enhanced compensation on the acquisition of lands, under the head income from other sources after issuing several notices.

4. The Ld. Counsel for the assessee submitted that there cannot be an assessment on a dead person and therefore, the assessment framed on a dead person is void ab initio. The Ld. Counsel for the assessee further submitted that the detailed submissions made before Ld. CIT(A) were completely ignored by the Ld. CIT(A) while disposing of the appeal and sustaining the addition.

5. On the other hand the Ld. DR relied on the order of the Ld. CIT(A) the Ld. DR further referring to page -9 para 6.1 of the Ld. CIT(A) order submitted that in response to notice issued u/s.148 of the Act a return was uploaded for current assessment year on 28.09.2020 declaring nil income. The Ld. CIT(A) sustained the addition since the legal heir of the assessee could not explain as to who has filed the return and why the return was filed when the assessee deceased long back. The Ld. DR submitted that the legal heir of the assessee also did not inform the AO about the death of the assessee, late Neeraj Kataria. The Ld. DR submitted that the CIT(A) is justified in setting aside the assessment for reframing the assessment on the legal heir of the Assessee.

6. In rebuttal the Ld. Counsel for the assessee placing reliance on the decision of the Hon’ble Jurisdictional Delhi High court in the case of Savita Kapila Vs. ACIT (118 taxmann.com 46) submitted that the Hon’ble High Court held that in absence of statutory provision duty cannot be cast upon legal representative to intimate factum of death of the assessee to the department. Therefore, the Ld. Counsel submitted that simply because the legal heirs of the assessee Late Neeraj Kataria did not inform the revenue department that the assessee had expired the notices issued u/s.148 and the assessment completed pursuant to such notice on the deceased assessee cannot be validated.

7. The Ld. Counsel for the assessee further furnished a copy of submissions made before the Ld. CIT(A) which is as under :-

2. The brief facts are that the assessee, Mr. Ram Parkash Kataria, was an agriculturist. He expired on 31.12.2016. Ld. Assessing Officer initiated. proceedings u/s 147 of the Income Tax Act 1961 (the Act) based on the information that the assessee received enhanced compensation and interest u/s 28 of Land Acquisition Act 1894 of Rs. 3.90.29,900/- from the Land Acquisition Officer on compulsory acquisition of his agricultural land in earlier years. The notice u/s 148 of the Act was issued in the name of Sh. Ram Parkash Katana on 24 03.2023 for A.Y. 2019-20. However, th