2023 (6) TMI 130 - HC - Income Tax

Validity of Reopening of completed assessment - notice was issued to person who was dead - responsibilities of legal representative of the deceased assessee - HELD THAT - As decided in Mitesh Goradhandas Somaiya 2022 (9) TMI 1252 - GUJARAT HIGH COURT fact or circumstances to suggest that the legal representative of the deceased assessee in any manner submitted to the jurisdiction of the income tax authorities or in any way participated in the proceedings to persuade the court to hold otherwise. On the contrary, communication was sent to the Income Tax officer by the legal representative that the noticee/assessee had died. Thus the present petition deserves to be allowed. It is hereby allowed by holding that the impugned notice, which was against the dead assessee, could not be sustained. Decided against revenue.

Summary

Issues involved: Validity of notice u/s 148 of the Income Tax Act, 1961 issued to a deceased person for the Assessment Year 2016-2017.

The petitioner sought to set aside a notice dated 26.3.2021 proposing to reopen the completed assessment for the said year, issued to a deceased person. The petitioner, as the legal heir, informed the authorities about the death of the assessee and provided the death certificate as evidence. The main contention was that proceedings against a dead person are nullity, and the Assessing Officer was duly informed about the death of the assessee.

The respondent department contended that the notice was competent as the death of the assessee was not intimated, and the PAN was not terminated. However, it was undisputed that the petitioner had informed the competent authority about the death of the assessee and requested to close the proceedings.

The court referred to previous judgments, including Mitesh Goradhandas Somaiya and Urmilaben Anirudhhasinji Jadeja cases, where it was held that assessment proceedings against a dead person are not competent. The court emphasized that proceedings against a deceased assessee are null and void unless the legal representatives participate in the proceedings or submit to the jurisdiction of the Assessing Officer. The court highlighted that mere intimation of the death of the assessee does not constitute legal representation or participation in the proceedings.

In conclusion, the court allowed the petition, holding that the notice issued to the deceased assessee was illegal and set it aside. The Income Tax authorities were directed not to proceed against the deceased assessee, affirming the well-settled principle that no assessment can be framed against a deceased person without the participation of legal representatives.