Offering an Ud-hiyah on behalf of the dead is permissible, because the Prophet (peace be upon him) offered Ud-hiyah on behalf of those who had not offered Ud-hiyah among his Ummah (nation based on one creed). The people who are alive and the dead are included in this. It was reported on the authority of Jabir that he said:
I witnessed `Eid-ul-Adha (the Festival of the Sacrifice) Prayer with the Messenger of Allah (peace be upon him). When he finished, he brought a ram and slaughtered it. He said: “Bismillah (In the Name of Allah), Allahu Akbar (Allah is the Greatest). O Allah! This (Ud-hiyah) is on behalf of myself and on behalf of those of my Ummah who have not offered an Ud-hiyah.”
(Related by Ahmad, Abu Dawud and Al-Tirmidhy)Also, Amir Al-Mu’minin (Commander of the Believers)
`Aly ibn Abu Talib offered an Ud-hiyah on behalf of the Prophet (peace be upon him) after the Prophet's death.
Hanash Al-San`any said:
`Aly (may Allah be pleased with him) sacrificing two rams. I said to him: "What is this?" He said: "Allah's Messenger (peace be upon him) entrusted me to offer an Ud-hiyah on behalf of him and I am doing that.
Abu Dawud and
Al-Tirmidhy) The saying that it is not prescribed to offer an Ud-hiyah on behalf of a dead person is unsubstantiated with evidence. Thus, this opinion is not correct. (Part No. 10; Page No. 415) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.