1997 (3) TMI 20 - HC - Income Tax

Reassessment u/s 148 upheld despite notice to deceased; spouse's income includible u/s 64

HC upheld the reassessment proceedings initiated under section 148 despite the notice having been issued in the name of a deceased assessee. The court ... Reassessment - notice issued under section 148 - Transfer Of Assets - inclusion of spouse's income in deceased's income u/s 64 - HELD THAT:- The widow of the deceased has already participated in the proceedings notwithstanding the fact that notice was issued in the name of the dead person. We are of the opinion that in the present case whether the issue of notice on a dead person under section 292B of the Act should be treated to be a procedural irregularity or whether it is a nullity, is academic since the widow of the deceased has already participated in the proceedings, this legal issue need not be decided in the present case. However, the very fact that the widow of the deceased-assessee has participated in the proceedings, the defect, if any, stands automatically cured. Hence, this question is answered against the assessee and in favour of the Revenue. The spouse of the assessee, should be includible in the income of the deceased or not, we have examined the finding of the Tribunal. We are of the opinion that on the basis of the material placed on record, the Tribunal has found the income of the widow to be includible in the income of the assessee. There is no reason to take a different view from the one taken by the Tribunal. Hence, this question is also answered against the assessee and in favour of the Revenue. The reference is accordingly disposed of. Issues involved: 1. Validity of reassessment proceedings when notice issued in the name of a dead person. 2. Inclusion of spouse's income in deceased's income u/s 64 of the Income-tax Act, 1961.Validity of Reassessment Proceedings: The High Court addressed the issue of the validity of reassessment proceedings when a notice was issued in the name of a deceased person. The court noted that the widow of the deceased had actively participated in the proceedings despite the procedural irregularity of the notice being served on a dead person. The court considered whether this irregularity should be treated as a procedural flaw or a nullity. Ultimately, the court concluded that since the widow had participated in the proceedings, any defect in the notice was deemed cured. Therefore, the court ruled in favor of the Revenue on this issue.Inclusion of Spouse's Income: Regarding the inclusion of the spouse's income in the deceased's income u/s 64 of the Income-tax Act, the court examined the Tribunal's findings. The Tribunal had determined that the income of the deceased's widow should be included in the deceased's income based on the evidence presented. The High Court agreed with the Tribunal's assessment and found no reason to deviate from their conclusion. Consequently, the court ruled in favor of the Revenue on this issue as well.In conclusion, the High Court disposed of the reference by upholding the validity of the reassessment proceedings and affirming the inclusion of the spouse's income in the deceased's income as per the provisions of the Income-tax Act, 1961.