2023 (1) TMI 1160 - HC - Income Tax

Reopening of assessment u/s 147 - notice has been issued in the name of Assessee who has passed away - curable u/s 292BB - HELD THAT - As it is quite clear that any notice which has been issued in the name of the deceased person is bad and illegal and here notice u/s 148AB is issued in the name of the deceased. Therefore, even when this aspect has been brought to the notice of the department, subsequent issuance of notice u/s 148 to the legal heir suffers from the initial defect. The defect being fundamental and as it is not curable u/s 292BB of the Income Tax Act (the Act). Resultantly, petition stands allowed quashing and setting aside the notices. Decided in favour of assessee.

Summary

Issues:
1. Notice issued in the name of a deceased person.
2. Validity of subsequent notice to legal heir.
3. Quashing of notices dated 20.03.2022 and 31.03.2022.

Analysis:
1. The petitioner approached the Court aggrieved by a notice issued in the name of a deceased individual, seeking relief through various writs. The Court issued a notice protecting the petitioner's interests.

2. The respondent, represented by learned counsel, argued that the notices were valid due to the deceased being identified as a non-filer for Assessment Year 2015-16. However, the Court found that issuing a notice in the name of a deceased person was fundamentally flawed and illegal, rendering subsequent notices to the legal heir defective.

3. After considering the arguments and evidence, the Court concluded that any notice issued in the name of a deceased individual is improper. Consequently, the Court allowed the petition, quashing the notices dated 20.03.2022 and 31.03.2022. The decision does not prevent the department from taking fresh action within the bounds of the law.

Overall, the Court's judgment emphasized the importance of proper notice issuance and highlighted the legal implications of serving notices in the name of deceased persons.