Revision against a deceased person is not valid – Sections 263 and 159 and 292BB – A. Y. 2009-10 – Where revision Proceedings u/s. 263 are initiated against a deceased assessee after the Income Tax Department comes to know of his death by notice returned by postal dept with remarks “addressee deceased”, such proceedings are a nullity and are not saved by section 292BB by reason of legal heirs having co-operated in revision proceedings nor by section 159

For the A. Y. 2009-10, the assessment was completed u/s. 143(3) on 26/03/2011 in the case of the assessee, M. A. Margesan. Subsequently, a notice u/s. 263 of the Act dated 06/09/2013 was issued in the name of the assessee, who had died on 13/06/2013. The notice was sent by post, but was returned with the endorsement ‘addressee deceased’. This fact was intimated by the Income Tax Officer to the Assistant Commissioner, by a communication dated 23/9/2013. However, thereafter the Department served the very same show cause notice on the son (Resdpondent)of the deceased assessee through a messenger. Left with no alternative, the son engaged the services of an authorised representative, who participated in the proceedings u/s. 263. Eventually, an order was passed by the Commissioner on 21/3/2014, sustaining the show cause notice, setting aside the scrutiny assessment order dated 23/6/2011 and remitting the matter back to the Assessing Officer to pass orders afresh. The Tribunal allowed the appeal holding that the order passed u/s. 263 against a dead person is a nullity.

On appeal by the Revenue, the Madras High Court upheld the decision of the Tribunal and held as under:

“Where revision proceedings u/s. 263 are initiated against a deceased assessee after the Income Tax Department comes to know of his death by notice returned by postal dept with remarks “addressee deceased”, such proceedings are a nullity and are not saved by section 292BB by reason of legal heirs having co-operated in revision proceedings nor by section 159. There is a distinction between proceedings initiated against a person, who is alive, but continued after his death and a case of proceedings initiated against a dead person.”