ITAT Delhi Rules Tax Proceeding Against a Deceased Person as Invalid; Favours Assessee

The tax department completed an assessment in the name of a woman who had already passed away. Her husband, as legal heir, said no notice was ever received and informed the authorities about her death, but the CIT(A) still dismissed the appeal. The ITAT held that any tax notice issued to a dead person is invalid. Therefore, the assessment was quashed, and the appeal was allowed.

The present appeal has been filed by Alka Kalra (Deceased) through Lekh Raj Kalra (Husband of deceased) (Appellant) against the ITO Ward (Respondent) in the Income Tax Appellate Tribunal (ITAT) Delhi Benches “SMC”, New Delhi, before Shri Pawan Singh (Judicial Member). The case is related to the assessment year 2012-13 and was decided on December 1, 2025. The appeal is filed against the final assessment order dated September 2, 2025 passed by the learnt Commissioner of Income tax (Appeals)/National Faceless Appeal Centre.

Background of the case:

The Authorised Representative (AR) stated that the AO passed an assessment order against a dead person. The assessee died on January 22, 2017. However, the assessment was finished on November 22, 2017 under section 144/147 of the Act. Since no notice was received by the legal heir of the assessee, they have no chance to make a response.

During the recovery proceedings, the deceased assessee filed an appeal before the CIT(A). The appeal was filed by her husband; he mentioned that in the statement of fact, the legal heir/appellant specifically mentioned this fact that the assessee has died. However, instead of taking corrective steps, the CIT(A) dismissed the appeal.

The assessee approached the ITAT; during the hearing, the AR of the assessee submitted that the assessment order is nullity; therefore, the assessment order is liable to be set aside. AR further cited a similar case of the Hon’ble Delhi High Court (Savita Kapila Vs ACIT (2020), which also held that if a notice under section 148 is issued after death, it will be considered as invalid and further quashed.

However, the DR supported the orders of lower authorities and added that legal heirs if the assessee had never informed the AO regarding the death of the assessee. DR further prayed for dismissal of the appeal.

After hearing both parties, ITAT said that the assessment in this case was reopened and completed in the name of a person who had already died in January 2017. His legal heirs said they never received any notices and only learnt about the assessment later. Even though this fact was mentioned in the appeal, the CIT(A) did not condone the delay or take corrective action. Since tax notices and orders issued to a deceased person have no legal validity, the assessment made under sections 148 and 144 is invalid. Therefore, the assessee’s legal grounds are accepted, and the issues on merits need not be considered. As a result, the tribunal allowed the taxpayer’s appeal.