2022 (2) TMI 46 - HC - Income Tax

Court dismisses writ petition challenging posthumous Assessment Order under Income Tax Act, emphasizes statutory appeal process.

The court dismissed the writ petition challenging an Assessment Order issued post the assessee's death due to Covid-19, citing non-compliance with Section ... Validity of assessment - As submitted that the assessee died on 09.05.2021 due to Covid-19 and therefore the notice issued under Section 142(1) of the Income Tax Act, 1961 remained unanswered - Assessment Order is being challenged primarily on the ground that the impugned order has been passed contrary to Section 159 of the Income Tax Act, 1961 and that it has been passed against the persons who has already died which is duly admitted and recorded in the impugned order - As noticed that the petitioner has also filed an appeal before the CIT (Appeals) under Section 146A - HELD THAT:- Since the petitioner has already filed a Statutory Appeal before the Appellate Commissioner, there is no merits in this writ petition as the petitioner has exercised the option of alternate remedy which indeed is more efficacious remedy under the facts and circumstances of the case. No merits in this writ petition. This writ petition stands dismissed with the above observations. Issues:Challenge to Assessment Order dated 21.09.2021 post the death of the assessee due to Covid-19, Compliance with Section 159 of the Income Tax Act, 1961, Allegation of a non-speaking order lacking discussion, Filing of an appeal before the CIT (Appeals) under Section 146A of the Income Tax Act, 1961.Analysis:The petitioner contested the Assessment Order issued on 21.09.2021 following the demise of the assessee due to Covid-19, arguing that the notice under Section 142(1) of the Income Tax Act, 1961 remained unanswered due to the death. Subsequently, a notice under Section 144 was sent to the deceased's chartered accountant, who responded on 17.09.2021, acknowledged by the respondents on 18.09.2021, leading to the impugned order. The challenge primarily focused on the violation of Section 159 of the Income Tax Act, 1961, asserting that the order was issued against a deceased individual, a fact acknowledged in the order itself.The petitioner's counsel contended that the impugned order was non-speaking, lacking a detailed discussion, and merely stated dissatisfaction with the accountant's explanation. After hearing both sides, it was revealed that the petitioner had already filed an appeal under Section 146A before the CIT (Appeals) against the impugned order. The court noted the existence of this statutory appeal, deeming it a more efficacious remedy under the circumstances, and concluded that the writ petition lacked merit due to the availability of an alternate legal recourse.In light of the petitioner's utilization of the statutory appeal mechanism, the court dismissed the writ petition, emphasizing the efficacy of the appeal before the Appellate Commissioner as the appropriate course of action. The judgment highlighted the importance of exhausting available legal remedies and closed the case without imposing any costs, bringing an end to the connected miscellaneous petitions.