Reassessment notice u/s148 sent to deceased taxpayer held void; service on legal heir required; fresh notice allowed.

A reassessment notice issued under s. 148 in the name of a deceased assessee was held to be void ab initio because service on a "correct person" is a jurisdictional condition precedent to reopening, as s. 148 contemplates a notice capable of being responded to by a living assessee, i.e., the legal heir. The defect was held to be foundational and not a curable irregularity; consequently, ss. 292B and 292BB could not validate the notice or confer jurisdiction. The HC therefore quashed the impugned s. 148 notice and the consequential order, while clarifying that the Revenue may issue a fresh notice in accordance with ss. 147/148 and within limitation.

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Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 issued in the name of deceased assessee.

Analysis:
The petitioner, a legal heir of the deceased assessee, challenged a notice dated 29.3.2018 issued under Section 148 of the Income Tax Act, 1961, seeking to reopen the assessment for the year 2011-12. The petitioner contended that the notice was without jurisdiction as it was issued in the name of the deceased person. The Assessing Officer rejected the objection, citing Section 292B of the Act, lack of registration as a legal heir, and the filing of a return in the deceased's name for another assessment year. However, it was established that the petitioner had registered as the legal heir of the deceased after the return was filed, and the assessment for a subsequent year was done in the petitioner's name. The Revenue's argument was refuted based on precedents from Gujarat, Delhi, and Madras High Courts, which deemed notices issued in the name of deceased persons for reopening assessments as null and void.

The Court emphasized that issuing a notice to the correct person is essential for reopening an assessment under Section 148. It was clarified that such a requirement is not merely procedural but a condition precedent for a valid notice. Notices issued in the name of deceased persons are not protected by Sections 292B or 292BB of the Act. The foundational requirement to acquire jurisdiction for reassessment is serving a notice on the correct person, who must be a living legal heir of the deceased assessee. Therefore, the impugned notice and order were quashed, allowing the Revenue to issue a fresh notice for reassessment if statutory requirements are met, including the limitation period.

In conclusion, the petition was disposed of by setting aside the impugned notice and order, clarifying that the decision did not prevent the Revenue from issuing a fresh notice if statutory conditions for reassessment were fulfilled.

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