Legal representatives must register on Income Tax Portal with death certificate before challenging section 148 notices

The HC dismissed a writ petition challenging notices issued under section 148 in the name of a deceased assessee. The petitioner, as legal representative, failed to properly register on the Income Tax Portal with required documents including death certificate and legal heirship certificate. The court held that after an assessee's death, legal representatives must follow prescribed procedures for registration before filing appeals. Since the petitioner had already filed a defective appeal before the Commissioner of Income Tax (Appeals), they could not subsequently challenge the assessment order through writ petition. The court granted liberty to cure defects in the appeal within 45 days and directed disposal within six months, while staying recovery proceedings during this period.

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Issues Involved:
1. Validity of the notice issued under Section 148 of the Income Tax Act, 1961.
2. Legality of the assessment order and demand notice issued posthumously.
3. Procedural compliance for appeals filed by the legal representative of the deceased assessee.

Summary:

Issue 1: Validity of the notice issued under Section 148 of the Income Tax Act, 1961

The petitioner challenged the notice dated 30.03.2022 issued under Section 148 of the Income Tax Act, 1961, arguing that it was issued in the name of the deceased assessee, Mrs. Nirmala Subramanian. The court acknowledged that the notice was issued to the deceased assessee and highlighted that the petitioner, as the legal representative, had filed a return of income for the deceased on 25.04.2022, which was considered before passing the assessment order dated 14.03.2023.

Issue 2: Legality of the assessment order and demand notice issued posthumously

The petitioner contended that the assessment order dated 14.03.2023 and the subsequent notice of demand dated 24.05.2023 were invalid as they were issued in the name of the deceased. The court noted that under Section 159 of the Income Tax Act, 1961, the legal representatives are deemed to be the assessee and are liable for the tax dues of the deceased. The court emphasized that the liability of the legal representative is limited to the extent of the estate of the deceased.

Issue 3: Procedural compliance for appeals filed by the legal representative of the deceased assessee

The petitioner had filed an appeal on 14.06.2023 against the assessment order in his capacity as the legal heir but without following the prescribed procedure. The court pointed out that the appeal had not been numbered due to procedural defects. The court directed the petitioner to cure the defects within 45 days and instructed the Commissioner of Income Tax (Appeals) to number the appeal upon compliance. The appeal should be disposed of on merits within six months.

Conclusion:

The court dismissed the writ petition, stating that the petitioner should pursue the remedy before the Commissioner of Income Tax (Appeals) by curing the procedural defects in the appeal. Recovery proceedings against the petitioner and other legal representatives were ordered to be kept in abeyance for six months. The court emphasized the importance of following the statutory requirements for filing appeals as legal representatives of the deceased assessee.

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