Income Tax Assessment against Dead Person is not Mere Procedural Irregularity but Jurisdictional Defect Too: Gujarat HC [Read Order]

A division bench of the Gujarat High Court has held that the income tax assessment/re-assessment against a dead person merely as procedural irregularity but it is also a jurisdictional defect.

The mother of the petitioner Rosamma died as back as on 27.5.2014. The petitioner intimated the authorities about the death and also forwarded the death certificate. He also conveyed that he was not the only heir and was not having knowledge about the transactions and the income affairs of the mother. Despite that the Income Tax Authority proceeded to issue notice and passed the assessment order. The petition er challenged the said order before the High Court.

The petitioner contended that the notice was issued to the mother who was dead person and that the notice to the dead assessee was invalid and illegal. It was submitted that despite intimation given to the authorities about the death, they proceeded against the dead person to frame assessment.

Quashing the impugned order, Justice N.V.Anjaria and Justice Bhargav D. Karia held that “the attempt on the part of the income tax authorities to start proceedings for assessment or re-assessment against the dead person is viewed not merely as procedural irregularity but it is stated as jurisdictional defect.”

“There was no circumstance could be pointed out by the respondent nor it emerged from the facts on record that the petitioner in any way submits about the jurisdiction of the Income Tax Authority or sequised in the proceedings. Intimation was given about the death of the mother- the assessee but the authorities did not pay heed. The position of law emanating from the decision of this court in Urmilaben Anirudhhasinji Jadeja Vs. Income Tax Officer, Ward 7(1)(3) [(420) ITR 226] (supra) and also in Himadri Kandarp Mehta L/H Of Late Kandarp Yashashvibhai Mehta Vs. The Income Tax Officer being Special Civil Application No.16323 of 2019 decided as per the judgment dated 1.8.2022, could not be disputed by learned advocate for the respondent,” the Court said.

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