Court upholds tax notice on deceased's bank account; widow must comply with inquiry

The Court dismissed the petitioner's challenge to the Notice under Section 133(6) of the Income Tax Act, 1961, regarding a credit entry in a deceased person's bank account. The Court held that legal representatives or inheritors of the deceased's estate are obligated to provide information for tax inquiries, even if the Notice was addressed to the deceased. Emphasizing the importance of compliance with such requests, the Court ruled that the petitioner, as the deceased's wife, cannot evade responsibility for significant financial transactions in her husband's account. The petition was dismissed without costs.

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Issues:
Challenge to impugned Notice under Section 133(6) of the Income Tax Act, 1961 regarding credit entry in deceased person's bank account.

Analysis:
The petitioner, wife of a deceased individual, challenged a Notice issued by the Income Tax Officer under Section 133(6) of the Income Tax Act, 1961, regarding a credit entry in the deceased's bank account. The petitioner contended that since the Notice was addressed to the deceased person, she was not accountable to provide the required information. The petitioner's counsel argued that as per the Act, the authority can require information from any person, including banking companies, for inquiries or proceedings under the Act. The counsel further highlighted that the Notice should have been issued in the name of the petitioner, not the deceased.

The Court noted that the purpose of Section 133(6) is to obtain relevant information for tax inquiries. Despite the Notice being issued to a deceased person, the Court emphasized that legal representatives or inheritors of the deceased's estate must comply with such requests for information. The Court found that the large sum in the deceased's bank account warranted an inquiry by the Income Tax Officer, even if the officer was unaware of the person's death when issuing the Notice. The Court stressed that the petitioner, as the deceased's wife, cannot claim ignorance regarding significant financial transactions in her husband's account.

In conclusion, the Court dismissed the petitioner's challenge, stating that the obligation to provide information, including bank details, remains with the legal representatives or inheritors of the deceased. Dismissing the petition, the Court highlighted that avoiding such inquiries through court intervention would defeat the purpose of the provision in the Income Tax Act, 1961. The Court ruled that the petition lacked merit and ordered its dismissal without costs.

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