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It needs to be accessible. Can’t just be buried unless it’s dead. Sounds like it’s still hot though.
 
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As I recall (and I was a GC, not an electrical contractor) you can not legally cover over a cover plate- it must remain assessable
 
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I am in the midst of a kitchen remodel and in the process one of the existing electrical receptacles is to be covered over by a floor to ceiling pantry cabinet. The re-modeler has removed the receptacle and wire nutted the hot leads, and likewise with the neutral and grounds all of the wiring is then tucked back into the box. He intends to cover the box with a cover plate before the cabinet is installed.

My question is, is this code? If not ,what is the proper method?
Not code compliant.

A bit more information would help in order to offer assistance.

1. Is your house one story with attic space or two and does it have a basement?

2. If it is one story, is there accessible attic space above the kitchen or in the basement?

3. Do the wires entering the box run horizontally (i.e. over from another wall box) or vertically (i.e dropped down from overhead attic space or up from the basement)?

A junction box with wire connectors installed in overhead attic space or in the basement is code-compliant because it is accessible. A goofy, but code-compliant solution is to install a box extender or a depth adjustable box and have a live receptacle in the back wall of your cabinet. You'll never use it, but it meets Code.
 
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