Interim Stay Granted on Income Tax Proceedings Issued to Deceased; Legal Heirs Contest Service Timeliness.

The HC of Delhi issued an interim stay on the impugned notice and subsequent orders related to income tax proceedings, challenged on grounds of being issued to a deceased individual and time-barred service to legal heirs. The respondent was instructed to file a counter-affidavit, with the matter set for hearing on 11th June, 2020.

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Issues:
Challenge to notice dated 31st March, 2019 and subsequent orders dated 21st November, 2019 and 27th December, 2019 for income tax proceedings.

Analysis:
The High Court of Delhi heard a writ petition challenging a notice issued by the Assessing Officer on 31st March, 2019, and the subsequent orders passed on 21st November, 2019, and 27th December, 2019. The petitioner argued that the notice was issued upon a deceased individual, making the proceedings invalid. The petitioner also contended that the legal heirs were not served notice within the stipulated time, rendering the proceedings time-barred. To support the argument, the petitioner cited relevant judgments such as Durlabhai Kanubhai Rajpara vs. Income Tax Officer Ward 1(3)(7), Surat; Rajender Kumar Sehgal vs. Income Tax Officer Ward 56(1) New Delhi; and Sumit Balkrishna Gupta vs. Asstt. Commissioner of Income Tax, Circle 16(2), Mumbai & Ors. The court issued a notice to the respondent, who accepted it through the learned standing counsel. The respondent was given a week to file a counter-affidavit, with a provision for rejoinder within three days thereafter. The matter was scheduled for a hearing and disposal on 11th June, 2020. Meanwhile, the court stayed the operation of the impugned notice and orders. The court directed the order to be uploaded on the website immediately and sent a copy to the counsel via email.

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