LASTING KNITS C/O MUHAMMAD USMAN (LATE) vs COMMISSIONER INLAND REVENUE, RTO, LAHORE S

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LASTING KNITS C/O MUHAMMAD USMAN (LATE) VS COMMISSIONER INLAND REVENUE, RTO, LAHORE S. 53---Death of Registered Person (individual)---Legal heirs not impleaded by Tax Authorities---Assessment order passed against dead person---Legality---Whether an assessment order is valid against a dead person?---Held: Any type of proceedings initiated/filed against a dead person are nullity in the eyes of law--- Neither the proceedings initiated against a dead person are valid nor the order is of any consequence--- Unless the legal heirs and representatives of the deceased assessee are impleaded to the jurisdiction of the assessing officer and have participated in the assessment proceedings, notice to the dead assessee and then commencement of the assessment proceedings against dead person are null and void---In the present case the assessment proceedings by the Officer Inland Revenue (OIR) against the dead person was not merely a procedural irregularity but a jurisdictional defect also because there cannot be an assessment against a dead person or non-existing assessee or a person who has died---Record transpired that original assessment order was framed against which appeal was filed before the Commissioner Inland Revenue -Appeals [CIR(A)]---During the pendency of the first appeal in the first round of litigation, the taxpayer died, however, the case was remanded back to the taxation officer/OIR--- Re-assessment notices were issued to the deceased taxpayer and in response the Authorized Representative (AR) apprised the OIR about the factum of death to the officer but he (OIR) without making any effort to implead the legal heirs/representatives of the deceased passed re-assessment order in the absence of any further reply---Even reasoning given by the OIR in the said order showed how casually and arbitrarily re-assessment was finalized---It is strange to note the observation of the OIR that since the taxpayer had died therefore the OIR had no option but to finalize the re-assessment---Surprisingly, the CIR(A) without considering said very pertinent aspect upheld the assessment order exparte and statedly so because of the death of the taxpayer---Since the assessing officer had not dealt with re-assessment proceedings in accordance with law, the impugned re-assessment order did not have any legal footing while the CIR(A) grossly erred in law in confirming the same--- Appellate Tribunal Inland Revenue set-aside the impugned orders being illegal, unlawful and a nullity in the eye of law---Appeal was accepted accordingly.

LASTING KNITS C/O MUHAMMAD USMAN (LATE) vs COMMISSIONER INLAND REVENUE, RTO, LAHORE S — 2025 PTD 1727 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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