Case Note & Summary
The petitioner, Gourang Anil Wakade, as the legal heir of his late mother Mrs. Meena Anil Wakade, challenged the reassessment proceedings initiated by the Income Tax Department against his mother after her death. Mrs. Meena Wakade died on 21 March 2020. Despite her death, the Income Tax Officer issued a show cause notice under Section 148A(b) of the Income Tax Act, 1961 on 24 March 2022, passed an order under Section 148A(d) on 14 April 2022, and issued a notice under Section 148 on 14 April 2022, all addressed to the deceased assessee. The petitioner contended that these actions were illegal and non-est as they were taken against a dead person. The respondents conceded that the notices should not have been issued to a deceased person. The court, relying on several precedents including decisions of the Gujarat, Madras, Delhi, and Bombay High Courts, and the Supreme Court in Maruti Suzuki India Ltd., held that the entire reassessment action was void ab initio. The court emphasized that a dead person cannot be heard or defend themselves, and the legal heirs are not bound by such void proceedings. However, the court clarified that the Revenue is not precluded from issuing fresh notices for reassessment against the legal heirs in accordance with law, subject to the requirements under Sections 147/148 and the applicable limitation period. The petition was allowed, and the impugned notices and order were quashed.
Headnote
A) Income Tax - Reassessment - Notice to Dead Person - Sections 148, 148A Income Tax Act, 1961 - The court considered whether reassessment proceedings can be initiated against a deceased person. The assessee died on 21 March 2020, but the department issued a show cause notice under Section 148A(b) on 24 March 2022, an order under Section 148A(d) on 14 April 2022, and a notice under Section 148 on 14 April 2022. The court held that the entire action was non-est and void ab initio because a dead person cannot be heard or defend themselves, and the legal heirs are not bound by such void proceedings. The court quashed the notices but permitted the Revenue to issue fresh notices to the legal heirs in accordance with law if requirements under Sections 147/148 are satisfied, including limitation. (Paras 2-10) B) Natural Justice - Right to be Heard - Opportunity of Defence - The court reiterated the first principle of civilized jurisprudence that a person against whom action is sought to be taken must be given a reasonable opportunity to defend themselves. Since the assessee was dead, there was no question of her being heard, rendering the entire proceedings void ab initio. (Para 6)
Issue of Consideration
Whether a notice under Section 148 of the Income Tax Act, 1961 and the preceding proceedings under Section 148A can be issued against a person who had died prior to the issuance of such notice.
Final Decision
The petition is allowed. The impugned notice under Section 148 dated 14 April 2022, the show cause notice under Section 148A(b) dated 24 March 2022, and the order under Section 148A(d) dated 14 April 2022 are quashed. However, the Revenue is permitted to issue fresh notices for reassessment against the legal heirs in accordance with law if requirements under Sections 147/148 are satisfied, including the limitation period. Rule made absolute with no costs.
Law Points
- Notice to dead person is void ab initio
- Natural justice requires opportunity of hearing
- Section 148A notice cannot be issued to deceased
- Legal heirs not bound by void order
- Revenue may issue fresh notice to legal heirs if limitation permits
