Topic
The ITAT ruled that an assessment order issued under section 143(3) in the name of a deceased taxpayer is merely irregular and can be corrected, not a nullity. Consequently, the tax liability remains enforceable and the legal heir may seek rectification without the order being void.
An assessment order issued under Section 148 after the assessee’s death is deemed void from the outset, rendering the notice ineffective. This ruling bars revenue authorities from reopening assessments of deceased taxpayers without proper procedural basis, protecting legal heirs from unwarranted tax demands.
ITAT Kolkata ruled the Section 148 reassessment notice for AY 2015-16 was barred by Section 149(1)(b) and set aside the ₹20.04 crore share-capital addition treated as unexplained cash credit. The decision protects taxpayers from reassessment notices served outside the statutory limitation period.
ITAT Lucknow quashes an assessment order for failure to issue the mandatory Section 143(2) notice, reinforcing that jurisdictional compliance is non-negotiable regardless of return filing timelines. The ruling underscores that procedural lapses render assessments void ab initio, impacting taxpayers facing re-assessment proceedings.
ITAT Mumbai holds that an assessment order under Section 143(3) cannot retain adjustments from a quashed Section 143(1) intimation. Consequential relief mandated.