Re-Assessment can’t be initiated against Dead Person is Invalid: Bombay HC [Read Order]

Re-Assessment - Re-Assessment initiated against Dead Person - Bombay High Court - Taxscan

A division bench of the Bombay High Court has held that the re-assessment under section 148 of the Income Tax Act, 1961 cannot be initiated against a dead person unless the legal representatives submit to the jurisdiction of the Assessing Officer without raising any objection.

A bench of Justices Dhiraj Singh Thakur & Valmiki Sa Menezes has observed that where the legal representatives do not waive their right to a notice under Section 148 of the Income Tax Act, it cannot be said that the notice issued against the dead person is in conformity with the intent and purpose of the Income Tax Act.

The petitioner, Mr. Shailesh Shah received a notice under Section 148 of the Income Tax Act, 1961, dated 30 March 2021, for the relevant assessment year 2014–15, which came to be issued against his deceased father, Ramniklal Harilal Shah. The petitioner contended that the assessee had since passed away on February 3, 2016. A copy of the death certificate was also submitted to the officer.

“This Court in the case of Dipak Tanna Vs. Income Tax Officer, has held that the notice issued to a dead person is not valid. Reliance in this regard can also be placed in the case of Income Tax Officer Ward 1(3)(7), Surat Vs. Durlabhbhai Kanubhai Rajpara.2 In this case, it was held that a 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. Consequently, where the legal representatives do not waive their right to a notice under Section 148 of the Act, it cannot be said that the notice issued against the dead person is in conformity with and with intent and purpose of the Act,” the Court said.

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