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Judgment
PER MADHUMITA ROY, JM:
The instant appeal filed by the assessee is directed against the order dated 09.10.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), [hereinafter referred to as ‘the Ld. CIT(A)] against the penalty order passed under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) for Assessment Year 2014-15.
The fact of the matter is that the assessee died on 21.01.2021 and the notices under Section 271(1)(c) of the Act was issued on 29.03.2022 and proceeding whereof was finalized upon imposing penalty against assessee which was further confirmed by the First Appellate Authority.
At the time of hearing, the Ld. Counsel for the assessee appearing before us submitted that in ITA No.284/Del/2024, the Co-ordinate Bench on 01.07.2024 has pleased to quash the order in quantum appeal preferred by the assessee on the ground that the assessment was finalized in the name of the deceased assessee. In fact notice under Section 148 of the Act was issued on 28.03.2021 after the death of assessee.
Having regard to the aspects of the matter, we do not find any merit in the order before us passed by the Ld. AO under Section 271(1)(c) of the Act imposing penalty upon the assessee. Notice issued on 29.03.2022, admittedly after the death of the assessee, further wrongly confirmed by the first appellate authority. Hence, the same is found to be bad in law and not sustainable and therefore, quashed.
In the result, the appeal filed by the assessee is allowed.