Assessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores Demand

The Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.

The Bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has set aside an assessment order of Rs. 10 crores passed by the Income Tax Department, solely on the ground that it was passed against only one of the legal heirs of the deceased assessee and not against all legal heirs.

The petitioners are the legal heirs of the deceased assessee, Kuldip Kohli. The petitioner received an aggrieved Reassessment Notice after the date of his death in the name of a deceased person or deceased assessee. The respondent passed the assessment order against the deceased assessee on his PAN without bringing on record all his legal heirs and/or transferring the proceedings to their PAN.

M Sufian Siddiqui, the Counsel on behalf of the petitioner contended that the death of the Assessee was duly communicated by his legal heirs. However, in ignorance of the facts available on record, the scrutiny proceedings have been wrongly conducted in the name of the deceased assessee on his PAN without bringing on record all his legal heirs or representatives as per the law.

The court has set aside the assessment order and directed the AO to issue notice to the petitioners and grant them the opportunity of a hearing.

Case Title: Darpan Kohli Versus Assistant Commissioner Of Income Tax

Citation: 2023 LiveLaw (Del) 529

Date: 31.05.2023

Counsel For Petitioner: M Sufian Siddiqui, Rakesh Bhugra, Kumar Satish Shah, and Alya Veronica 

Counsel For Respondent: Sunil Agarwal

Click Here To Read The Order