Notices to Deceased Under Income Tax Act Deemed Invalid; Court Quashes Actions, Upholds Legal Heir's Petition.

The court held that notices issued to a deceased person under the Income Tax Act, 1961, are null and void. It emphasized that issuing a notice to the correct person is a condition precedent for validity. As the notices were issued in the name of the deceased despite awareness of death, the court quashed the notices and proceedings, prohibiting further actions. The petition by the legal heir was allowed, with no costs, reinforcing that legal requirements must be adhered to when issuing notices.

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Issues involved:
The judgment involves issues related to the legality of issuing a notice for reopening assessment on a deceased person under the Income Tax Act, 1961.

Facts:
The petitioner, as the legal heir of the deceased assessee, challenged the notice issued under section 148A(b) of the Act and subsequent proceedings. The deceased had filed her income tax return and the petitioner had been approved as the legal heir. Despite the awareness of the death of the assessee, the respondent issued notices in the name of the deceased, leading to the present petition.

Arguments:
The petitioner contended that the notices issued on the deceased were improper and that the respondent should have abstained from such actions. The respondent argued that the petitioner had not challenged the previous intimation order and had not fulfilled certain requirements to register as the legal heir, suggesting that the petitioner should seek remedy before the Assessing Officer.

Judgment:
The court noted that issuing notices on a deceased person is null and void, citing precedents from different High Courts and the Supreme Court. Referring to the law, the court emphasized that issuing a notice to the correct person is not just procedural but a condition precedent for validity. Considering the circumstances and the evolving ITBA system, the court held that the notices and proceedings on the deceased assessee were invalid. Consequently, the impugned notices and orders were quashed, and further actions were prohibited. The petition was allowed with no costs.

Conclusion:
The court's decision was based on the principle that notices on deceased individuals are legally invalid, emphasizing the importance of adhering to legal requirements for issuing notices under the Income Tax Act. The judgment aimed to uphold the rule of law and prevent unnecessary litigation by ensuring compliance with established legal principles.

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