2024 (6) TMI 1419 - HC - Income Tax

Validity of assessment u/s 147 against the dead person - HELD THAT - When the assessee dies during pendency of the proceedings, proceedings are to be continued through the legal representatives of the deceased. Accordingly, the order, demand notice are set aside. Consequent to allowing the writ petition and setting aside of the assessment order, the order of freezing the bank account as evidenced at Annexure-'K' is set aside. Matter is remitted to the stage post to the notice issued u/s 148 of the Act. Revenue to take steps in accordance with Section 159(2)(a) of the Act.

Summary

The petitioner challenged the validity of assessment and penalty orders under the Income Tax Act. The petitioner, who passed away during the proceedings, was assessed posthumously, rendering the orders null and void. The court set aside the assessment and penalty orders, directing proceedings to continue through the legal representative. The freezing of bank accounts was also revoked. The matter was remitted for further action in accordance with the Act.