Income Tax Notice issued to Dead Person for Reopening of Assessment of Dead Person is Null and Void: Madhya Pradesh HC [Read Order]

In a recent decision the Madhya Pradesh High Court ruled that the income tax notice issued to dead person for reopening of assessment of dead person is null and void.

The present petition under Article 226 of the Constitution of India challenges the notice under Section 148 of the Income Tax Act, 1961for the assessment year 2018-19 dated 31.03.2022 as well as order under Section 148A(d) of the Income Tax Act of 1961 dated 31.03.2022 for the assessment year 2018-19.

For verification of the above investment, the respondent has taken accord of the competent authority and issued show cause notice under Section 148A(b) of the Income Tax Act. In response to the said show cause notice, the legal heir of the assessee has filed death certificate of the original assessee. However, the legal heir of the original assessee has not given sufficient explanation about the investment made to purchase the immovable property and also mentioned that since the original assessee has died, therefore, notice is issued to her son.

The issue which falls for consideration of the Court is as to whether the impugned notice under Section 148 of the Income Tax Act is issued in the name of dead person i.e. Mrs. Amita Lalwani is enforceable in law. The fact that Mrs. Amita Lalwani died on 07.07.2021 is not disputed. The notice issued in the name of the dead person is unenforceable in the eyes of law.

The counsel for the petitioner submitted that an essential condition to issue notice under Section 148 of the Income Tax Act is that the notice be issued to the person who is alive and the same cannot be issued to a dead person. Since issuance of notice under Section 148 of the Income Tax Act is the foundation for reopening of an assessment, then such notice should ought to have been issued in the name of correct person which is a condition precedent to the impugned notice being valid in law.

A Division Bench of Justices SA Dharmadhikari and Pranay Verma observed that “Various High Courts have observed that the notice issued to a dead person for reopening of assessment of a dead person is null and void, this Court holds that the notice and all consequential proceedings arising therefrom in the name of the deceased assessee are not sustainable.”

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