Case Note & Summary
The petitioner, Raniben Khimji Patel, is the legal heir of Khimji Karamshi Patel who died on 2nd March 2021. The Income Tax Department issued a notice under Section 148 of the Income Tax Act, 1961 dated 30th June 2021 for Assessment Year 2014-15, and a similar notice for A.Y. 2013-14, in the name of the deceased assessee despite being informed of his death. The petitioner challenged the notices on two grounds: first, that a notice issued to a dead person is null and void; second, that the notice issued after 1st April 2021 did not comply with the newly amended provisions. The court, relying on the decision in Sumit Balkrishna Gupta v. Assistant Commissioner of Income Tax, held that a notice issued in the name of a dead person is null and void ab initio and cannot be validated. The court did not need to address the second ground as the first ground was sufficient to quash the notices. The petitions were allowed and the impugned notices were quashed.
Headnote
A) Income Tax - Reassessment Notice - Notice to Dead Person - Section 148, Income Tax Act, 1961 - Notice issued under Section 148 in the name of a deceased assessee after his death is null and void ab initio - The court held that a notice issued to a dead person has no legal effect and cannot be cured by subsequent substitution of the legal heir - The petition was allowed and the notice was quashed (Paras 1-8).
Issue of Consideration
Whether a notice under Section 148 of the Income Tax Act, 1961 issued in the name of a deceased person after his death is valid and whether the notice is liable to be quashed on that ground alone.
Final Decision
The court allowed both writ petitions and quashed the impugned notices dated 30th June 2021 issued under Section 148 of the Income Tax Act, 1961 for Assessment Years 2014-15 and 2013-14.
Law Points
- Notice issued to a dead person is null and void
- Reassessment notice under Section 148 must be issued to a living person
- Legal heir must be substituted before issuing notice
- Failure to follow procedure renders notice invalid
Case Details
2022 LawText (BOM) (02) 88
Writ Petition No. 2329 of 2021 and Writ Petition No. 2394 of 2021
K.R. Shriram, N. J. Jamadar
Mr. Dharan V. Gandhi for Petitioner, Mr. Suresh Kumar for Respondents
Assistant Commissioner of Income Tax, Central Circle 7(3) & Ors.
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Nature of Litigation
Writ petition challenging reassessment notice under Section 148 of the Income Tax Act, 1961 issued in the name of a deceased person.
Remedy Sought
Quashing of the reassessment notices dated 30th June 2021 for A.Y. 2014-15 and A.Y. 2013-14.
Filing Reason
The notices were issued in the name of Khimji Karamshi Patel after his death, despite the department being informed of his death.
Issues
Whether a notice under Section 148 of the Income Tax Act, 1961 issued in the name of a deceased person is null and void.
Whether the notice issued after 1st April 2021 complied with the amended provisions of the Income Tax Act.
Submissions/Arguments
Petitioner argued that notice issued to a dead person is null and void and that the notice was issued without following mandatory provisions effective from 1st April 2021.
Respondent's arguments not mentioned in the judgment.
Ratio Decidendi
A notice under Section 148 of the Income Tax Act, 1961 issued in the name of a deceased person is null and void ab initio and cannot be cured by subsequent substitution of the legal heir.
Judgment Excerpts
Notice issued in the name of dead person for assessment is null and void.
This court in Sumit Balkrishna Gupta vs. Assistant Commissioner of Income Tax has held that a notice issued to a dead person is null and void.
Procedural History
The petitioner filed two writ petitions challenging reassessment notices issued under Section 148 of the Income Tax Act, 1961 for Assessment Years 2013-14 and 2014-15. The notices were issued on 30th June 2021 in the name of the deceased assessee Khimji Karamshi Patel, who died on 2nd March 2021. The court heard both petitions together and disposed them by a common order.
Acts & Sections
- Income Tax Act, 1961: Section 148
