2020 (5) TMI 633 - HC - Income Tax

Notice issued to dead person - HELD THAT - As petitioner submits AO could not have issued the impugned notice dated 31st March, 2019 upon a dead person - the orders passed in pursuance to the said notice are a nullity. Learned counsel for petitioner states that no notice was ever served upon the legal heirs within time and thus the proceedings are barred by limitation. In support of his submission, he relies upon Durlabhai Kanubhai Rajpara vs. Income Tax Officer Ward 1(3)(7), Surat, 2019 (4) TMI 784 - GUJARAT HIGH COURT ; Rajender Kumar Sehgal vs. Income Tax Officer Ward 56(1) New Delhi, 2018 (12) TMI 697 - DELHI HIGH COURT ; and Sumit Balkrishna Gupta vs. Asstt. Commissioner of Income Tax, Circle 16(2), Mumbai Ors. , 2019 (2) TMI 1209 - BOMBAY HIGH COURT . Issue notice. Mr. Zoheb Hossain, learned standing counsel accepts notice on behalf of the respondent. He prays for and is permitted to file a counter-affidavit/ reply-affidavit within a week.

Summary

Issues:
Challenge to notice dated 31st March, 2019 and subsequent orders dated 21st November, 2019 and 27th December, 2019 for income tax proceedings.

Analysis:
The High Court of Delhi heard a writ petition challenging a notice issued by the Assessing Officer on 31st March, 2019, and the subsequent orders passed on 21st November, 2019, and 27th December, 2019. The petitioner argued that the notice was issued upon a deceased individual, making the proceedings invalid. The petitioner also contended that the legal heirs were not served notice within the stipulated time, rendering the proceedings time-barred. To support the argument, the petitioner cited relevant judgments such as Durlabhai Kanubhai Rajpara vs. Income Tax Officer Ward 1(3)(7), Surat; Rajender Kumar Sehgal vs. Income Tax Officer Ward 56(1) New Delhi; and Sumit Balkrishna Gupta vs. Asstt. Commissioner of Income Tax, Circle 16(2), Mumbai & Ors. The court issued a notice to the respondent, who accepted it through the learned standing counsel. The respondent was given a week to file a counter-affidavit, with a provision for rejoinder within three days thereafter. The matter was scheduled for a hearing and disposal on 11th June, 2020. Meanwhile, the court stayed the operation of the impugned notice and orders. The court directed the order to be uploaded on the website immediately and sent a copy to the counsel via email.