2024 (1) TMI 1135 - HC - Income Tax

Reassessment proceedings against dead person - HELD THAT - As reopening notice u/s 148 issued in the name of a dead assessee is null and void being without jurisdiction. Recently, this Court in MEET LALWANI LEGAL HEIR OF LATE MRS AMITA LALWANI Versus INCOME TAX OFFICER WARD 2 (1) INDORE, PR. COMMISSINOER OF INCOME TAX. 2023 (11) TMI 1196 - MADHYA PRADESH HIGH COURT has also held that notice and all consequential proceedings arising therefrom in the name of deceased assessee are not sustainable. Assessee appeal allowed.

Summary

Issues involved:
The judgment involves a challenge to a notice under Section 148A(b) of the Income Tax Act, 1961 and an order u/s 148A(d) for the assessment year 2015-16, issued in the name of a deceased person, raising questions of jurisdiction and legality.

Details of the Judgment:

Issue 1: Validity of Notice and Order u/s 148A(b) and 148A(d)
The petitioner, a widow and legal heir, challenged the re-assessment proceedings initiated against her deceased husband. The petitioner argued that the notice issued in the name of the dead person is unenforceable in law, citing legal precedents where similar notices were set aside. The court considered the settled legal principle that a notice issued in the name of a dead person is invalid, and observed that the legal representatives are not under a statutory obligation to inform the tax department of the death of the assessee.

Issue 2: Legal Position on Notices to Deceased Persons
The court referred to various judgments, including those by the Delhi High Court, Madras High Court, and Mumbai High Court, emphasizing that a notice issued in the name of a deceased person is null and void. It was held that the foundational requirement for reopening an assessment is to issue a notice to the correct person, and notices to dead persons are without jurisdiction. The court reiterated that the notice and all consequential proceedings in the name of a deceased assessee are not sustainable.

Issue 3: Decision and Order
In light of the legal precedents and the specific circumstances of the case, the court quashed the impugned notice and order issued in the name of the deceased assessee for the assessment year 2015-16. All actions in furtherance of the notice and order were prohibited. The respondent was given liberty to reinitiate proceedings against the petitioner, the legal heir of the deceased, if advised. The petition was allowed with no order as to costs.

This judgment highlights the importance of issuing notices to the correct person and the legal implications of notices issued to deceased individuals under the Income Tax Act, 1961.