2022 (6) TMI 658 - HC - Income Tax

Reopening of assessment u/s 147 - notice against a dead person - HELD THAT - This Court is of the view that the issue in the present case is covered by the Division Bench judgment in Savita Kapila 2020 (7) TMI 441 - DELHI HIGH COURT which was followed by this Court in Mrs. Sripathi Subbaraya Manohara L/H late Sh. Sripathi Subbaraya Gupta 2021 (7) TMI 695 - DELHI HIGH COURT wherein the notice under Section 148 of the Act against a dead person was held to be null and void and all consequential proceedings/orders, including the assessment order and subsequent notices were set aside. Keeping in view the aforesaid mandate of law, the order passed under Section 148A(d) of the Act and the consequential notice issued under Section 148 are set aside. - Decided in favour of assessee.

Summary

Issues:
Challenge to Order under Section 148A(d) and consequential notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2015-16 issued in the name of a deceased person.

Analysis:
The writ petition challenged the Order passed under Section 148A(d) and the consequential notice issued under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2015-16 on the grounds that they were issued in the name of a deceased person. The Petitioner contended that the impugned order and notice were invalid and void from inception, leading to a jurisdictional defect in the proceedings initiated. Despite informing the Respondent about the demise of the Assessee multiple times, the Respondent proceeded with the impugned order and notice in the name of the deceased person.

During the proceedings, the Respondent's counsel expressed unawareness of the death of the individual named in the notice and requested the Court's permission to issue notice to the legal representatives of the deceased. The Court referred to a Division Bench judgment and a previous case where a notice under Section 148 of the Act against a deceased person was deemed null and void, leading to the setting aside of all consequential proceedings and orders, including the assessment order and subsequent notices.

Based on the legal precedent and the mandate of law established in previous cases, the Court set aside the order passed under Section 148A(d) of the Act and the consequential notice issued under Section 148 of the Act dated 30th March, 2022. The Respondent/Revenue was granted liberty to take further steps in the matter if permitted by law. The Petitioner was also given the liberty to seek remedies in accordance with the law if any grievances arise from future steps taken by the Respondent/Revenue.