Income Tax Assessment Notice issued in name of Dead person not valid: Delhi high court
The Delhi High Court has declared 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 died before the issue of notice, and hence, all proceedings are void from the outset. The impugned notice under section 148 of the Act was issued in the name of the assessee. The petitioner claims that he has not received the said notice. Subsequently, notice was again issued in the name of the assessee under section 142(1) of the Act.
As there was no reply to these notices, 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 was also issued in the name of the assessee.
The respondent submitted that the notice under section 148 of the Act was issued at the same address of the assessee which is available in the ITD database. The said notice was duly served as it was never received back by the respondent. Thereafter, a notice under section 142(1) was issued on 30.10.2019 at the same address and served by the postal agencies. On receipt of no response to the communication, a show-cause notice under section 144 of the Act was issued on 15.12.2019 and re-sent to the same address. Subsequently, an assessment order under section 144 of the Act was passed on 23.12.2019, in which an additional cash deposit of Rs 48,53,000/- was added under section 69A of the Act. Penal 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.
However, all correspondence to the assessee was held by the Division Bench of Justice Navin Chawla and Justice Manmohan that since a notice was issued against a deceased person under section 148 of the Act, the same is null and void and all consequential proceedings or orders including assessment order and Subsequent notices, being equally tainted, deserve to be set aside.
