The Bombay High Court has quashed a re-assessment notice under section 148 of the Income Tax Act, 1961 issued against a dead person.
The petitioner Kiran Toraskar received a notice under Section 148 of the Income Tax Act, 1961 dated 30 June 2021 and 20 June 2022 and the Order under Section 148A (d) Income Tax Act, 1961 dated 30 June 2022 on the ground that the reassessment proceedings have been initiated against deceased father of the petitioner. Who expired on 4 November 2019. Against the order of the Assessing Officer, petitioner filed the petition before the Bombay High Court.
Section 148A (d) of the Income Tax Act, 1961 provides that before issuing notice under section 148 of the income tax act 1961 the assessing officer should conduct an enquiry on the approval of the authority about the information related to tax has escaped.
Advocate Suresh Kumar appeared for the respondents and Advocate Yahya Ghoghari appeared on behalf of the petitioner.
Yahya Ghoghari counsel for the petitioner submits that Petitioner already has informed the death of his father to the assessing officer. A copy of the death certificate was also furnished along with the response. After knowing the death of the assessee, the assessing officer issued the notice as per section 148 of Income Tax Act 1961.
The bench of Justice Dhiraj Singh Thakur and Kamal Khata observed that “initial notice under Section 148 was in the name of the deceased and so was the subsequent communication dated 20 May 2022 purporting to be a notice in terms of Section 148A(b), it is settled law that notice issued under Section 148 of the Act against a dead person would be invalid unless the legal representatives submit to the jurisdiction of the Assessing Officer without raising any objection”
Thereafter the bench set aside the order issued under Section 148 of the Income Tax Act, 1961 dated 30 June 2021 and 20 June 2022 and the Order under Section 148A(d) Income Tax Act, dated 30 June 2022.
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