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2023 (2) TMI 272 - HC - Income TaxReopening of assessment u/s 147 - notice issued is on late Assessee - HELD THAT - This Court in the case of Chandreshbhai Jayantibhai Patel 2019 (1) TMI 353 - GUJARAT HIGH COURT has dealt with the very issue of issuance of notice to the dead person to hold that the same is unsustainable under the law and that defect of initiation of notice to the deceased cannot be cured for the notice has to be treated as invalid. The similar view is taken in case of Urmilaben Aniruddhasinhji Jadeja 2019 (9) TMI 356 - GUJARAT HIGH COURT Resultantly, this petition is allowed. Quashing and setting aside the notice and all consequential orders. However, if otherwise permissible under the law, a fresh notice under Section 159(2)(b) of the Income Tax Act in this relation to the legal heirs is permitted. - Decided in favour of assessee.
Issues Involved:
Challenge to proceedings under Section 147, 148 of Income Tax Act, 1961 due to notice issued to deceased assessee, validity of subsequent notice to legal heirs, legality of notifications affecting Sections 147, 148, 149, 150, and 151, and the applicability of two parallel provisions post amendment. Analysis: Issue 1: Challenge to Proceedings under Section 147, 148 The petitioner challenged the proceedings under Section 147 and 148 of the Income Tax Act, 1961, initiated through a notice issued to the deceased assessee for the assessment year 2017-18. The petitioner, as the legal heir, sought to challenge the legality of the notice issued in the name of the deceased, arguing that it was impermissible under the law. Issue 2: Validity of Subsequent Notice to Legal Heirs The legal heirs of the deceased assessee raised objections to the initial notice issued to the deceased, asserting that subsequent notices to legal heirs did not validate the initial action. The court emphasized that the jurisdictional notice under Section 148, being a condition precedent for assessment, was invalid when issued to a deceased person. Citing precedents, the court held that such notices to dead persons are unsustainable and must be treated as invalid. Issue 3: Legality of Notifications and Applicability of Amended Provisions The petitioner also challenged the legality of Notifications affecting Sections 147, 148, 149, 150, and 151 of the Income Tax Act, 1961, arguing that the amended provisions post the Finance Act, 2021, made certain sections ex-facie illegal. The court examined the amendments and held that two parallel provisions cannot be applicable simultaneously when the Finance Act specifically amended Section 148 from 1.4.2021. Judgment The court, citing previous decisions, quashed and set aside the notice and all consequential orders, allowing the petition. However, the court permitted the issuance of a fresh notice under Section 159(2)(b) of the Income Tax Act to the legal heirs if permissible under the law. Any interim relief granted earlier was vacated, and the petition was disposed of accordingly. This comprehensive analysis highlights the key legal issues addressed in the judgment, including challenges to the proceedings under Section 147, 148, the validity of notices to legal heirs, and the legality of notifications affecting relevant sections of the Income Tax Act, 1961. The judgment provides clarity on the jurisdictional requirements and the implications of issuing notices to deceased individuals, emphasizing the need for compliance with legal procedures and precedents.
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