Invalid Notice Against Deceased Person Nullified Under Income Tax Act

The court found that the notice issued against a deceased person under section 148 of the Income Tax Act was a nullity. Emphasizing the need to initiate proceedings against the legal representative of a deceased assessee as per section 159 of the Act, the court quashed the notice addressed to the deceased and ruled in favor of the petitioner, the legal heir. The impugned notice issued to the deceased was set aside for the assessment year 2010-11, and the petition was allowed, with the rule made absolute.

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Issues:
Challenge to notice under section 148 of the Income Tax Act, 1961 issued to a deceased person.

Analysis:
The petitioner challenged a notice issued under section 148 of the Income Tax Act, 1961, dated 30.03.2017, addressed to a deceased person, late Shri Dhirajlal Dayaljibhai Thakkar, who passed away on 19.08.2012. The petitioner, being the legal heir, filed the petition under Article 226 of the Constitution of India. The petitioner argued that the notice issued against a dead person is a nullity. The petitioner's counsel referred to the provisions of section 159 of the Act, emphasizing that proceedings against a deceased person should be taken against the legal representative. The counsel relied on previous court decisions to support the argument that the notice should have been issued in the name of the legal heir, not the deceased person.

The respondent contended that the notice was computer-generated based on the deceased assessee's PAN and that the proceedings were not vitiated by the death of the assessee. The respondent argued that the legal heir's participation in the appellate proceedings validated the notice. The respondent cited sections 292B and 292BB of the Act to support their position that the notice was valid and legally sound.

In response, the petitioner's counsel referred to a decision by the Madras High Court regarding the application of section 292BB, highlighting that in cases where the assessee is deceased, the provisions may not apply. The petitioner argued that the notice should be set aside based on this interpretation.

After considering the arguments and precedents cited by both parties, the court found that the notice issued against a deceased person was a nullity. The court emphasized that proceedings against a deceased assessee should be initiated against their legal representative, as per the provisions of section 159 of the Act. The court held that the notice under section 148 of the Act was not in compliance with the law and, therefore, quashed and set aside the impugned notice issued to the deceased father of the petitioner for the assessment year 2010-11. The petition was allowed, and the rule was made absolute accordingly.

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