2020 (8) TMI 156 - HC - Income Tax

Validity of reopening of assessment - notice issued u/s 148 to the deceased- assessee - HELD THAT - Since in the present case, the petitioner has filed appeals which are pending adjudication in different forums, it would not be appropriate to entertain the present writ petition. Accordingly, the present writ petition and pending application are dismissed. However, the CIT (Appeals) and ITAT are directed to expedite the disposal of the appeals pending before them. It is clarified that this Court has not expressed any opinion on the merits of the matter and all the rights and contentions of the parties are left open.

Summary

Issues involved:
Challenge to notice under Section 148 of the Income Tax Act issued to deceased-assessee, jurisdiction to reopen assessment, delay and laches in filing petition, applicability of judgment in Savita Kapila case, pending appeals before different forums.

Analysis:
1. The petition challenged a notice issued under Section 148 of the Income Tax Act to a deceased-assessee and eight consequential assessment orders. The petitioner argued that jurisdiction to reopen an assessment requires the notice to be issued to the correct person, not a dead person, citing the judgment in Savita Kapila case.

2. The respondent contended that the petition was barred by delay and laches, as some assessment orders were passed in 2016. It was highlighted that appeals had been filed against all eight assessment orders, with some pending before the Income Tax Appellate Tribunal and others before the Commissioner, Income Tax (Appeals).

3. The respondent argued that the notice in the present case was issued in accordance with Section 159 of the Act to the deceased through the legal representative, making the Savita Kapila judgment inapplicable. The Court noted the pending appeals and decided not to entertain the writ petition, directing the expedited disposal of appeals by the Commissioner, Income Tax (Appeals) and Income Tax Appellate Tribunal.

4. The Court clarified that its decision did not express any opinion on the merits of the case, leaving all rights and contentions of the parties open. The order was to be uploaded on the website immediately, with a copy forwarded to the learned counsel through email.

This comprehensive analysis covers the key issues addressed in the judgment, providing a detailed understanding of the legal arguments and decisions made by the Delhi High Court.