Income Tax Assessment Notice issued in name of Dead person not valid: Delhi High Court [Read Order]

The Delhi High Court has ruled the Income Tax Assessment Notice issued in the name of the deceased person not valid.

The petitioner, Dharamraj has challenged the above notices and proceedings on the ground that they were initiated against a person who had died prior to the issuance of notice and therefore, all proceedings are void ab initio.

The impugned notice under Section 148 of the Act was issued in the name of the Assessee. The petitioner claims that he did not receive the said notice. Subsequently, notice under Section 142(1) of the Act was again issued in the name of the Assessee. As no response was received to these notices, a Show Cause Notice was issued to the Assessee. Finally, an assessment order was passed against the Assessee. Notice under Section 221(1) and notice under Section 271(1) (b) of the Act were also issued in the name of the Assessee.

The respondent submits that notice under Section 148 of the Act was issued at the same address of the Assessee which is available in the ITD data base. The said notice was duly served as it was never received back by the respondent. Thereafter, notice under Section 142 (1) was issued on 30.10.2019 at the same address and was served by the postal agencies. As no response to the communications was received, a Show Cause Notice dated 15.12.2019 under Section 144 of the Act was issued and sent again at the same address. Assessment order under Section 144 of the Act was thereafter passed on 23.12.2019 making an addition of Rs.48,53,000/ under Section 69A of the Act being unexplained cash deposit. Penalty proceedings under Sections 271(1) (c), 271(1)(b) and 271F were also initiated by issuing a Show Cause Notice, again served at the same address. Though, all the correspondences to the Assessee

The division bench of Justice Navin Chawla and Justice Manmohan held that as the notice under Section 148 of the Act was issued against a dead person, the same is null and void and all consequent proceedings or orders, including the assessment order and the subsequent notices, being equally tainted, are liable to be set aside.

DHARAMRAJ vs INCOME TAX OFFICER

CITATION: 2022 TAXSCAN (HC) 170

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.