Calcutta HC Quashes Order u/s 154 of Income Tax Act Passed Against Deceased, Allows Appeal Filed by Daughter-in-law of Deceased [Read Order]

The Calcutta HighCourt, in a recent ruling, quashed the order under section 154 of the IncomeTax Act, 1961, which was passed against the deceased, and allowed the petition filed by the daughter-in-law of the deceased against the order.

Murari Lal Soni, the petitioner, challenged the order under section 154 read with section 147 of the Income Tax Act, 1961 ( “the said Act) dated 25th July 2024 for the assessment year 2013-14, the instant writ petition has been filed.

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Mr. Agarwal, advocate appearing in support of the writ petition, submitted that the show-cause notice and the response filed by the daughter-in-law of the assessee, since deceased, would submit that as on the date when the notice of proceeding was issued under section 154 of the said Act, the assessee had already expired. The factum of the death of the assessee on 20th March 2022 would be corroborated from the death certificate of the assessee as appearing in the writ petition.

Mr. Agarwal would further submit that the Assessing Officer, notwithstanding being aware of being put on notice as regards the factum of death of the assessee, had proceeded to pass the order impugned. According to Mr. Agarwal, the same is not sustainable in law and should be set aside.

A single bench of Justice Raja Basu Chowdhury viewed that when the showcause notice was issued under section 154 of the said Act the assessee had died, and the factum of death being within the notice of the Assessing Officer when the order dated 25th July 2024 was passed, the order passed by the Assessing Officer under section 154 of the said Act dated 25th July 2024 for the assessment year 2013-14 cannot be sustained.

While qaushing the order, the bench held that “The aforesaid order shall, however, not stand in the way of the respondents from proceeding against the heirs of the assessee in accordance with law.”

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