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ITAT quashes order on deceased taxpayer

ITAT quashes order on deceased taxpayer

Inheritor is not going to obtain tax discover: ITAT quashes order on deceased taxpayer

The Revenue Tax Appellate Tribunal (ITAT), Mumbai bench, dominated out that an evaluation order issued within the identify of a deceased taxpayer was ‘non-est’ (doesn’t exist) and dismissed the addition made to the deceased particular person’s taxable earnings.

The taxpayer died in August 2015, and the evaluation order, which added Rs 1 crore to his taxable earnings for the monetary yr 2009-10, was issued in February of the next calendar yr.

In an order dated Could 2023, the Commissioner (Appeals) – Faceless Appeals Centre upheld this addition.

Following that, his spouse, the authorized inheritor, filed an enchantment with the ITAT. She claimed that the Commissioner (Appeals) had an obligation to file her however had uncared for to take action. She emphasised that in one other order issued by the ITAT in November 2020, she was clearly recognized because the lawful inheritor.

Based on the tax tribunal, within the current case, no discover was issued within the identify of the authorized inheritor following the demise of the taxpayer (late M.H. Bothra).

When an individual dies, his or her authorized inheritor is obligated to pay tax dues that the deceased would have been obligated to pay below part 159 of the Revenue Tax Act. Because of this, if a legitimate evaluation is carried out, the authorized inheritor might be answerable for the demand raised on the deceased taxpayer.

On this case, because the evaluation order framed within the identify of the deceased taxpayer was declared non-est in legislation, the tax demand raised can be invalid, the professional defined.

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