Penalty dies with Deceased
Bhuban Mohan Mitter Charitable Trust vs Income-Tax Officer (Calcutta)
The Deceased assessee filed his return on 16-10-1971 and subsequently the ITO issued notice u/s 148 for the default committed by the assessee.
The Honorable ITAT acknowledged that it is a well-established legal principle in various High Courts and the Supreme Court that penalty proceedings under the Act are quasi-criminal in nature. According to criminal jurisprudence, a crime ceases to exist with the death of the individual, and the legal representative of the deceased offender or criminal cannot be held liable for the offenses or crimes committed by the deceased. If this fundamental principle of criminal jurisprudence is extended to the penalty proceedings under the Act, which are considered quasi-criminal in nature, then quasi-crime also ceases to exist with the deceased individual. Therefore, it would be highly unreasonable, severe, and unjust to penalize or punish the legal representatives for quasi-crimes committed by the deceased individual. In view of the above penalties levied were deleted.
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