Court declares assessment order against deceased individual illegal, emphasizes need for legal representation in such cases

The court declared the assessment order and demand notice against the deceased individual as illegal, setting aside the assessment order. It emphasized that proceedings against a deceased person are not permissible without the active participation of legal representatives, highlighting the jurisdictional defect in such cases. The court directed the income tax authorities not to proceed against the deceased assessee and stressed the importance of legal representation in assessment proceedings involving deceased individuals for maintaining the validity of the process.

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Issues Involved:
Challenge to assessment order and demand notice under Income Tax Act, 1961 against a deceased individual.

Analysis:
The petition challenged an assessment order and demand notice issued against a deceased individual, Bachuji Balaji Thakor, for the Assessment Year 2016-2017. The petitioner sought to declare the proceedings void ab intio and non-est. It was noted that Bachuji Balaji Thakor passed away on 22.10.2018, and the assessment order raised tax demands based on unaccounted sale consideration. The key issue was whether assessment proceedings against a deceased person are maintainable.

In a similar case, the court held that assessment against a dead person is not permissible unless legal representatives participate in the proceedings. The court emphasized that mere intimation of the death of the assessee does not constitute legal representation. The court clarified that proceedings against a dead person are a jurisdictional defect and cannot be continued unless legal representatives actively engage in the assessment process.

Despite the income tax authorities being informed of Bachuji Balaji Thakor's death, they proceeded with the assessment order without considering the legal heir's objection. The court found that the legal representative did not submit to the jurisdiction or participate in the proceedings, leading to the conclusion that the notice against the deceased assessee was invalid.

Consequently, the court allowed the petition, declaring the notice and assessment order against the deceased individual as illegal and set aside the assessment order dated 23.3.2022. The income tax authorities were directed not to proceed against the deceased assessee. The court emphasized the importance of legal representation and active participation of heirs in assessment proceedings involving deceased individuals to maintain the validity of the process.

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