2019 (4) TMI 819 - HC - Income Tax

Notice u/s 148 - notice issued to the dead person - despite information, ITO issued notice u/s 142(1) - Held that - The facts are not seriously in dispute. The Petitioner had produced the death certificate of Shri Shyamsundar Dhumatkar before the Income Tax authorities, indicating that he died on 14/10/2016. Thus, the impugned notice of reopening of assessment was issued on a dead person. There are several judgments of different High Courts holding that the notice or reopening of assessment is invalid in law. A reference in this respect can be made to a decision of Gujarat High Court in the case of CHANDRESHBHAI JAYANTIBHAI PATEL VERSUS THE INCOME TAX OFFICER 2019 (1) TMI 353 - GUJARAT HIGH COURT , decided on 10/12/2018). As also the decision of Madras High Court in the case of ALAMELU VEERAPPAN VERSUS THE INCOME TAX OFFICER, NON CORPORATE WARD 2 (2) , CHENNAI 2018 (6) TMI 760 - MADRAS HIGH COURT . It is not necessary to refer to all the judgments on the point. Suffice it to say, as per the settled law, notice for reopening of assessment against a dead person is invalid. - Decided against revenue

Summary

Issues:
Validity of notice for reopening assessment against a deceased person under section 148 of the Income Tax Act, 1961.

Analysis:
The judgment by the High Court of Bombay involved a petition filed by the widow of a deceased individual who had stopped filing income tax returns due to having no taxable income. The Assessing Officer issued a notice under section 148 of the Income Tax Act, 1961, for reopening the assessment for the year 2011-2012, even though the individual had passed away. The widow, as the legal heir, brought this fact to the attention of the income tax department. The court noted that the impugned notice was indeed issued on a deceased person, rendering it invalid in law. The petitioner presented the death certificate of the deceased individual, confirming the date of death. The court referred to various judgments of different High Courts, such as the Gujarat High Court and the Madras High Court, which held that notices for reopening assessments against deceased persons are legally invalid. Citing established legal principles, the court set aside the impugned notice and disposed of the petition accordingly. As a consequence, the order of assessment dated 31/12/2018 was also annulled.

In conclusion, the High Court of Bombay, in the judgment delivered by AKIL KURESHI And SARANG V. KOTWAL, JJ., ruled that the notice for reopening the assessment against a deceased person under section 148 of the Income Tax Act, 1961, was invalid in law. The court emphasized the settled legal position that such notices are not permissible. The judgment provides clarity on the legal standing regarding assessments of deceased individuals, ensuring that legal procedures are followed appropriately and in accordance with established principles.