HC: Tax Reassessment Notices Invalid U/S 148 to a Dead Person

Against the dead person, the Bombay High Court ruled that a reassessment notice is not valid until the legal representatives submit to the jurisdiction of the Assessing Officer without lifting any protest.

The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki Sa Menezes, the legal representatives do not give their right for the notice under section 148 of the income tax act, the same shall not be mentioned that the notice furnished against the dead person would be in the affirming state with the purpose of the income tax act.

On March 30, 2021, the notice under section 148 of the income tax act 1961 for the related assessment year 2014-15 would be furnished against the applicant’s father, Ramniklal Harilal Shah. The answer to the notice would be submitted via applicant, telling the assessing officer, the taxpayer lost his life dated 3rd Feb 2016. Before the officer, a copy of the death certificate was indeed get submitted.

The applicant to the assessing officer claimed that there shall be no proceeding initiated or allowed to be carried out opposing the dead person.

Read Also: Duty of Legal Heir for the Income Tax Return Filing of Dead Person

The opinion of the applicant gets refused by AO. The AO sees that the reassessment notice was being furnished dated 30th March 2021 also no data was available during the issuance of the notice in the office which incurs that Ramniklal H. Shah was alive until notified via the legal heir to the Department. Under section 148 the notice was valid and the proceedings were being carried on via the legal heir.

The assessment order and the notice of demand have been cancelled by the court.