High Court allows appeal, sets aside notice issued to deceased under Income Tax Act, emphasizes invalidity of such notices.

The High Court of Calcutta allowed the appeal, condoning a 91-day delay in filing and setting aside a notice issued under Section 148 of the Income Tax Act, 1961, in the name of a deceased person. The Court emphasized the invalidity of notices issued to deceased individuals and directed authorities to proceed under amended provisions. The assessment order against the deceased was also set aside, allowing the department to proceed against the legal representative. The matter was remanded for further proceedings in accordance with the law, leading to the closure of the stay application.

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Issues:
1. Condonation of delay in filing appeal.
2. Validity of notice issued under Section 148 of the Income Tax Act, 1961 in the name of a deceased person.
3. Applicability of amended provisions under Section 148A of the Act.
4. Setting aside of notice and assessment order against a dead person.
5. Direction to proceed against the legal representative of the deceased assessee.

Condonation of Delay:
The High Court of Calcutta considered a delay of 91 days in filing an appeal and reviewed the affidavit filed for condonation of delay. The Court found sufficient cause for the delay and allowed the application for condonation of delay.

Validity of Notice Issued to Deceased Person:
The appeal challenged a notice issued under Section 148 of the Income Tax Act, 1961, on 13th April, 2021, concerning the assessment year 2014-15. The appellant contended that a notice issued in the name of a deceased person is void ab initio. Citing relevant case law, it was argued that such notices are invalid, and the Court agreed, setting aside the notice issued in this case.

Applicability of Amended Provisions:
Referring to a Supreme Court decision, it was argued that notices issued under Section 148 prior to an amendment are deemed validated under the new law. However, the Court emphasized that a notice issued upon a deceased assessee is void from the beginning. The Court directed the authorities to proceed in accordance with the amended Section 148A of the Act.

Setting Aside Notice and Assessment Order:
The Court concluded that not only the notice issued on 13th April, 2021, but also the assessment order dated 25th March, 2022, against a deceased person must be set aside. The respondent department was granted liberty to proceed against the legal representative of the deceased assessee as per the amended provisions, considering the legal heir certificate and other documents submitted during the assessment.

Direction to Proceed Against Legal Representative:
The Court allowed the appeal, setting aside the order passed in the writ petition. It directed the remand of the matter to the Assessing Officer to proceed in accordance with the law, specifically under the amended provisions of Section 148A of the Act. Consequently, the notice issued to the deceased person and the related assessment order were set aside, with instructions to proceed against the legal representative of the deceased assessee.

Closing of Stay Application:
The stay application related to the case was closed as a result of the judgment delivered by the High Court of Calcutta.

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