Reassessment Notice Issued Against A Dead Person Would Be Invalid: Bombay High Court

The Bombay High Court has held that a reassessment notice against a dead person would be invalid unless the legal representatives submit to the jurisdiction of the Assessing Officer without raising any objection.

The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki Sa Menezes has observed that where the legal representatives do not waive their right to a notice under Section 148 of the Income Tax Act, it cannot be said that the notice issued against the dead person is in conformity with the intent and purpose of the Income Tax Act.

The notice under Section 148 of the Income Tax Act, 1961, dated 30 March 2021, for the relevant assessment year 2014–15, came to be issued against the petitioner's father, Ramniklal Harilal Shah. The reply to the notice was submitted by the petitioner, informing the assessing officer that the assessee had since passed away on February 3, 2016. A copy of the death certificate was also submitted to the officer.

The petitioner contended before the assessing officer that no proceeding could be initiated or permitted to be continued against a dead person.

The AO rejected the petitioner's contention. The AO observed that the reassessment notice was issued on 30.03.2021 and at the time of issue of the notice, there was no information available in the office to establish that Ramniklal H. Shah was alive unless informed by the legal heir to the Department. The notice under section 148 was valid and the proceedings were being continued through the legal heir.

The court quashed the order of assessment and the notice of demand.

Case Title: Shailesh Shah, Legal Heir of Late Shri Ramniklal Harilal Shah Versus The Income Tax Officer

Case No: Writ Petition No. 3651 Of 2022

Citation: 2022 LiveLaw (Bom) 368 

Date: 23.09.2022

Counsel For Petitioner: Advocate Ratan Samal

Counsel For Respondent: Advocate Suresh Kumar

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