2022 (1) TMI 1346 - HC - Income Tax

Reopening of assessment u/s 147 - notice issued to a dead assessee - HELD THAT - The issue raised in the present writ application is no longer res integra in view of the decision of this High Court in the case of Bhupendra Bhikhalal Desai Vs. Income Tax Officer 2 021 (3) TMI 892 - GUJARAT HIGH COURT - We are informed that the aforesaid decision of this Court has been affirmed by the Hon ble Supreme Court with the dismissal of Special Leave Petition filed by the Revenue 2021 (9) TMI 1474 - SC ORDER This writ application succeeds and is hereby allowed. The impugned notice is hereby quashed and set aside. Decided in favour of assessee.

Summary

Issues:
Challenge to notice of reopening under Section 148 for A.Y. 2017-18 issued to deceased assessee.

Analysis:
The writ applicant, through her legal heir, sought various reliefs including quashing the notice of reopening the completed assessment for A.Y. 2017-18. The challenge was based on the jurisdictional issue of issuing the notice to a deceased assessee. The High Court heard arguments from both parties, with Mr. S.N. Divatia representing the petitioner and Mr. M.R. Bhatt representing the Revenue.

The Court noted that the issue raised in the present writ application had already been addressed in a previous decision of the High Court in the case of Bhupendra Bhikhalal Desai Vs. Income Tax Officer. The said decision was further affirmed by the Supreme Court through the dismissal of a Special Leave Petition by the Revenue. This legal precedent established that issuing a notice of reopening to a deceased assessee was without jurisdiction.

Based on the precedent and legal principles, the High Court allowed the writ application, quashed the impugned notice of reopening, and terminated all consequential proceedings. The Court's decision was in line with established jurisprudence and the principles of natural justice, ensuring the protection of legal rights even in the context of tax matters.

In conclusion, the judgment provided clarity on the jurisdictional aspect of issuing notices of reopening to deceased assessees, emphasizing the importance of upholding legal principles and ensuring due process in administrative actions.