Kerala HC Rules Notice Issued to Deceased Person Invalid, Legal Heirs’ Participation Cannot Validate Proceedings

As per Kerala High Court, it mentioned that the notice against a dead person is not true and the participation of the statutory heirs of the deceased in the proceedings doesn’t make it legal.

The Division Bench of Justices A.K. Jayasankaran Nambiar and K.V. Jayakumar noted that “the consent of the parties cannot confer jurisdiction to the assessing authority for initiation of an action which is otherwise illegal and ‘non-est’.”

The appellants in this matter are the legal heirs of late taxpayers who lapsed dated 30.10.2021. On 27.03.2023 the notice was provided on the late taxpayer’s address.

On the notice receipt, the 1st appellant appeared to the Assessing Officer (AO) and notified him about the taxpayer’s death.

After that, the Revenue issued an order on 10.04.2023 under Clause (d) of Section 148A of the Act in the deceased taxpayer’s name. Following that, a notice has been issued by him dated 10.04.2023 u/s 148 of the Act in the name of the deceased taxpayer.

A writ has been furnished by the appellant before the High Court citing that the assessment proceedings asked to get started u/s 147 of the Act is nonsustainable. The petition has been dismissed by the Single Judge.

It was furnished by the taxpayer that the issued notice under the name of a deceased person is invalid and in the lack of issuance of a valid notice, the assessment proceedings asked to be initiated u/s 147 is non-sustainable.

The department mentioned that the notices furnished before the dead person u/s 148A(b) and 148A of the Act are just mere peculiarities, which can be cured. As the statutory heirs of the deceased taxpayer have participated before in the proceedings, they are estopped from availing a distinct appeal in the writ petition.

As per the bench, “the notices issued under Sections 148A(b) and 148 of the Act in the name of a dead person are invalid and ‘non-est’ in the eye of law. It is a nullity and not a mere irregularity which could be cured. It is true that, on the receipt of the above said notices, the legal heirs of the deceased Naringaparambail Bhaskaran/appellants herein appeared before the assessing authority. However, that by itself would not change the situation.”

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As per the bench, the consent of the parties could not grant jurisdiction before the assessing authority for the start of the measure which is otherwise not legal and non-est.

With the opinion of the Single Judge, the bench disagreed that the legal heirs of the deceased taxpayer are estopped from taking a distinct stand in the writ petition as they have appeared before the assessing authority and taken part in the proceedings.

The bench added that “the initiation of proceedings against a dead person under Sections 148A(b) and 148 of the Income Tax Act are illegal and ‘non-est’.”

The bench in the aforesaid view has permitted the plea.