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5. At first, we may take note of certain dates which would be relevant in subsequent discussion: 

      (a)    Date of filing ITR by assessee             - 12.06.2016
      (b)    Date of death of assessee                  - 28.10.2016
      (c)    Date of notice u/s 143(2)                  - 04.07.2017
      (d)    Date on which the legal heir informed to AO about death of
             assessee:
             - As being claimed by legal heir           - 15.09.2017
             - As being claimed by revenue              - 25.08.2023
      (e)    Date of assessment-order                   - 07.12.2018

7. Thus, the CIT(A) has noted these crucial facts in Para 6.3 of his order, namely (i) the AO initiated scrutiny proceeding through notice u/s 143(2) dated 04.07.2017 to the deceased assessee who had already expired on 28.10.2016, and (ii) the legal heir informed to AO about death of assessee on 15.09.2017 but the AO did not bring the legal heir on record and carried assessment proceedings and completed assessment in the name of deceased assessee. Ultimately, relying upon decision in Chandreshbhai Jayantibhai Patel 413 ITR 276 dated 10.12.2018 (Guj HC), the CIT(A) accepted that the notice dated 04.07.2017 u/s 143(2) issued by AO to a deceased person was invalid and therefore the assessment-proceeding was null and void. The CIT(A) has also made an observation that the factum of death of assessee came to the knowledge of department on 15.09.2017 but still the department did not re-initiate proceedings of scrutiny by bringing legal heir on record.

Intimation of death of assessee:

8. So far as the intimation to AO/department regarding death of assessee is concerned, Ld. AR contended that the legal heir applied to AO/department on 15.09.2017 on designated e-filing portal and the AO/department approved legal heir's request on 27.09.2017 after rigorous verification in terms of their procedure. Thus, the legal heir had informed the AO/Department about death of assessee on 15.09.2017 during assessment-proceeding itself. Ld. AR filed following document downloaded from e-filing webportal of Income-tax Department to show this:

THERE IS NO STATUTORY REQUIREMENT IMPOSING AN OBLIGATION UPON LEGAL HEIRS TO INTIMATE THE DEATH OF THE ASSESSEE.

ITO, Raisen vs. Late Smt. Sudha Agrawal (L/H: Manmohan Agarwal)

32. This Court is of the view that in the absence of a statutory provision it is difficult to cast a duty upon the legal representatives to intimate the factum of death of an assessee to the income tax department. After all, there may be cases where the legal representatives are estranged from the deceased assessee or the deceased assessee may have bequeathed his entire wealth to a charity. Consequently, whether PAN record was updated or not or whether the Department was made aware by the legal representatives or not is irrelevant. In Alamelu Veerappan (supra) it has been held "nothing has been placed before this Court by the Revenue to show that there is a statutory obligation on the part of the legal representatives of the deceased assessee to immediately intimate the death of the assessee or take steps to cancel the PAN registration."